The majors may run out of week before a sustainable move gets a chance to set, however, the daily charts are signaling that the dollar may be under pressure soon.Cable buyers stepped in after positive PMI numbers, but with Japan and the European markets having bank holiday's it was a tough call as to whether it could hold. Outside of that the majors are doing the tango, one step forward, one step back, whilst the Daily chart support and resistance areas are taken out.
There is no doubt at all that the next sustainable break could be massive, and it does look as though it is building into a short-dollar play, but the lack of equity market momentum in the near-term may not allow that break to happen on Friday, TheLFB-Forex.com Trade Team said. Keep an eye on the reaction to the 10:00 EDT ISM numbers, they are about the only thing that could instigate a move today.
Euro: Holding 1.3200 at the close sets up a great base to work higher from next week. 3330 to 3350 is all that it is offering right now going long.
Cable: Double top at 1.4950 area, take care long until that has gone an big volume. Holding the 4 hour long momentum. No short choices outside of a reversal from 4850 to 4800.
Aussie: If the pair stays above 0.7200, the 200 Day SMA, at the close we will have the ultimate near-term signal that support is in place and that a test of 7900 and 8500 may be coming.
Swissy: Trapped between 1.1360 and 1.1420, two major Daily chart SMA areas. Leave it alone until they break.
Cad: Bouncing off the 200 Day SMA area at 1.1850, a break lower from there gets a 200 pip move potential very much in focus. Also look for a long retracement up towards 1.2200 if equity markets move lower.
Yen: Following S&P Futures, and on a Friday of ISM 10:00 EDT economic numbers, that means anything could happen.