With some key data out this week, news looks to be in control. German and Swiss CPI numbers, USD Consumer Confidence and Fridays duo, Non-Farm Payrolls/Unemployment could see the market finally set a direction. Depending on how much risk appetite there is, we could see some flow between now and Friday, with Friday being the main mover.

EUR/USD

News from this week may set the tone for a reach to some of the outside range limits we have been seeing in the EUR/USD as of late. With the EUR/USD sitting a little above center in its range , a test of highs or lows could come into view in the coming week and a half. In the next few days look for a test to the declining trend line or the Lower Bollinger Band

GBP/USD

Sterling does not want to give up that bottom channel line, which makes me think that come the end of the week it snaps. Between month end settling and US Non-Farm payrolls, if the flows are solid and the NFP number is as expected, or a little firmer(not likely), then 1.9700/650 is ripe for picking. If the line holds, then look for the moves back to a 2.0200 test.

USD/CHF

USD/CHF has been consolidating its move to the top downward channel since it reached that point on July 23^rd. Indecision in the pair is high. Last Thursday and Friday’s close were only three points from each other. Both tops are within three points of each other, but the lows are a different story. Fridays low was thirty five points lower than Thursday’s. If today’s close is lower than Friday’s, look for the bottom, 1.0010/00 in the coming week. Interestingly enough, this would put parity back in the pair.

USD/JPY

Friday tested the old adage, “support becomes resistance, and resistance becomes support”. The top of our old down channel was tested on Friday and held. The troublesome aspect technically is the top formed in the last three days. Don’t go short yet.  Something in the 108.50 area is being protected. If the market decides to take it out, or the protection is dropped a swift move past the 108.57 high of 6/16 could cut off a few heads. On the down side, 106.56 look stop be the first stop on the way back to 104.00

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