Forex Bull

EURUSD is testing 1.3392 key resistance, a break above this level will indicate that a cycle bottom has been formed at 1.2884 level on daily chart, and then further rally

The Canadian dollar has exhibited tremendous strength this past week, brought on by the Bank of Canada?s hesitation to adopt quantitative easing and a notable cooling in nation?s recession.

It is fitting that the euro is on the cusp of a dramatic trend change considering what is at stake from the fundamental side of the currency this week. While the world?s second most prolific currency has been visibly restrained from developing a major trend against most of its major counterparts recently; it is the EURUSD pair that is the most meaningful.

US Dollar Forecast Turns Bearish on S&P Rallies, NFP?s Up Next Euro Long-Term Trend Could Be Decided By ECB Decision, Outlook Japanese Yen Outlook Clouded as Risk Trends Remain in Flux British Pound Makes Headway as UK Data Reflects Stabilization Swiss Franc Outlook Remains Bleak as Growth and Inflation Falter Canadian Dollar Strength Could Evaporate Should Labor Data Stumble Australian Dollar Poised to Break 0.7300 Against US Dollar New Zealand Dollar May Weaken As Unemployment Expected To Rise

The Japanese Yen is likely to see a nearly empty economic calendar give way to risk sentiment as the dominant force guiding price action once again.

Posted By: Patti Domm Traders say there are a number of risks in the coming week, the biggest of which will be the results of the government’s stress tests on 19 banks, now expected to be released Thursday.    Read More Topics: Earnings | Banking | Currencies | Stock Market | Investment Strategy Sectors: Banks | Oil and Gas Companies: General Motors Corp | Berkshire Hathaway Inc.

There is a sense of security when trading the world?s most liquid currency pair. However, market depth and the stability it provides are only beneficial with the broader market is itself on a steady course.

The British pound was the second strongest of the majors last week, losing out only to the Canadian dollar, as GBP/USD bounced from support at the 100 SMA. While there is resistance looming above for the pair at the April 16 high of 1.5070, economic releases could work in favor of British pound gains in the near-term.

- Euro Under Pressure Ahead of Expected ECB Rate Cut, Credit Easing Announcement – British Pound Could Maintain Strength into Next Week If BOE Maintains Neutral Stance – Australian Dollar Could Continue Rally Next Week, Canadian Dollar to See Key Employment Data

Continued rallies in global risky asset classes left the Australian Dollar higher against the US and New Zealand Dollars to end the week?s trade. Overall momentum favors further Aussie Dollar appreciation, and we believe that a break of 0.7300 is likely.