USD/CAD
The US dollar initially weakened against the Canadian dollar earlier in the week, slipping toward the 1.35 level before rebounding and showing renewed strength. This recovery is shaping a potential weekly hammer pattern. A break above the 1.3750 level could pave the way for further gains toward 1.40. Overall, the pair is likely to remain range-bound, continuing to trade within the broad sideways band that has held for more than a year.
EUR/USD
The euro climbed at the start of the week but now appears to be losing momentum, struggling to hold on to its gains. Traders are likely assessing whether the broader uptrend can be sustained. With the US dollar having been oversold against several currencies, the euro often serves as a key gauge for the greenback’s next move. Even if the pair breaks higher, the measured move from the prior consolidation range indicates that the upside may be limited to around 1.23.
GBP/USD
The British pound advanced early in the week but later surrendered roughly half of those gains amid continued choppy trading. The 1.3750 level remains a key area to monitor, as a decisive break above it could clear the path toward 1.39. On the downside, a pullback would likely find support around 1.35, followed by 1.33 if selling pressure intensifies. Overall, the US dollar appears to be regaining some strength.
USD/MXN
The US dollar has weakened further against the Mexican peso, with the pair appearing to drift toward the 17.00 level. A decisive break below that mark could open the door to a move toward 16.50. On the upside, any rebound is likely to face significant resistance around 17.50. That said, the pair may ultimately settle into a consolidation phase, similar to the range observed at this level in late 2023.
Silver
Silver remains highly erratic, with the week producing a volatile yet ultimately neutral candlestick. The $80 level appears to act as a pivot point and a magnet for price action. Strong support is seen near $70, while $90 stands out as a key resistance zone. Overall, the market is likely to continue exhibiting choppy and unpredictable movements.
Gold
Gold also moved in a back-and-forth manner throughout the week, with the $5,000 level emerging as a potential price magnet. A sustained break above $5,000 could signal the start of a stronger upward move. However, recent candlestick patterns tell a mixed story: a prominent Shooting Star formed a couple of weeks ago, followed by a hammer, suggesting ongoing uncertainty and likely consolidation. Still, the longer price holds near the $5,000 mark, the more it may indicate underlying bullish strength.
USD/CHF
The US dollar has declined against the Swiss franc, though the 0.76 level appears to be providing solid support. If the pair rebounds from this area, it could move toward the 0.79 level, which stands out as significant resistance. Overall, the market remains sensitive to potential action from the Swiss National Bank, and the risk of intervention if the franc strengthens too much makes taking short positions less appealing at this stage.
USD/JPY
The US dollar dropped sharply against the Japanese yen over the week and is now testing its 50-week EMA. A rebound from this area could see the pair target ¥156, with ¥158 as the next potential objective. On the longer-term charts, the ¥160 level—where price pulled back a few weeks ago—remains a significant resistance zone dating back to 1990.
Although this week’s candlestick appears bearish, there are likely plenty of buyers waiting below. It may simply be a matter of allowing the market to stabilize before considering fresh long positions. For now, it’s a pair worth monitoring closely, but staying on the sidelines seems prudent.
Sources: Christopher Lewis
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