The US dollar continued its rally back from yesterday night's Asian session. We mentioned last week that we could see a pull back in the USD Index by the end of the week but it wouldn't last long and that's what exactly happened. The US Dollar dropped back to test it's major up trend line shown on the chart below. As we can see on the chart, the USD Index has recovered back all of its Fridays loses.


EURUSD: the European currency made its way to the upside on Friday. We mentioned that there was a chance for the euro to reach around 1.38 before we could see it continue its downtrend and that's what took place. The European currency began its drop from yesterday's Asian session. The EURUSD is most likely to continue this down move towards 1.3630 and 1.3550.

GBPUSD: the British pound continued its retracement to the upside last week reaching as high as 1.5216 but it couldn't hold that for long. The pair dropped back hard today on fears that the UK could lose its credit rating due to its financial situation. The GBPUSD is now likely to remain under pressure and most likely to drop to 1.48 during the week.

USDCHF: the pair dropped on Friday last week as the US Dollar dropped across the board. We reported that 1.0580 represented a key support level. The pair dropped to that level but couldn't break below and it's now trading back around 1.0630. It's likely to continue with this up move and could reach as high as 1.0730 and 1.0800 this week.

Gold: Gold prices were one of the major signs that the down move in the US Dollar on Friday was limited. The US Dollar dropped across the board while the Gold price remained under pressure. Now the gold prices is trading around 1103 and it's likely to continue with this down move and could reach a target of 1090 and 1070 this week.