21st November 2011

The Euro/Usd last week saw a lot of bearish momentum with the strengthening of the US dollar all the way to the 1.3500 mark that I believe may be a tough support to break.With all rhetoric and sentiments about the ECB now being able to lend money to the IMF to help out ailing economies giving minor reprieve to the Euro and bonds now lower than the 7%,the Euro is still under a lot of pressure that make it difficult to trade.
For Eur/Usd on the 3500 mark I am expecting some minor retrace up before we can continue with the down fall to much lower levels.Sentiment is still bearish for this pair with some strength coming from the US early this morning on a deadlock over budget cuts as the 23rd November deadline approaches. A break below the 3500 mark may signal further  weakness to 3250 and later 3000 mark.

The New Zealand Dollar against the Yen and the Dollar has reached a major trend line from June 2010 all the way to last week's price action on the daily charts and may be respected for a while should the currency manage to gather some strength this coming week.There is however a lot of flight to safety to less risky assets and the high yielding currency may feel the effect especially with its deficits.

Nzd/Jpy also has a major trend line from February 2009 to last weeks price action.A break below this trend line may signal further weakness and bearish break towards the 50's.

The British Pound seems to be heading lower this week as the British economy continues to falter.However,the Pound seems to be the recipient of capital flows from the Euro which may indicate that it is somehow becoming some safe haven currency.This may continue to bolster the currency against some currencies such as the CAD and the Euro. The Gbp/Jpy continues to trade lower this week with a touch of the 61.8% fib level on the weekly chart  as it seems Japanese interventions bears no fruit.We will patiently on the daily charts to see of it breaks this level lower or it will hold.

Gbp/Nzd has reached a major resistance line at 2.0900 which has held off quite well in may this year.I am of the opinion that it will retrace a bit to previous weekly highs 2.05815 before we can continue forward.

WTI crude oil has formed a bearish candle off the 61.8% fib line and is mostly oversold.It however opened much higher from Fridays close but i am expecting some bearish momentum this week.Lets continue to watch on the sidelines for further confirmations.

Those are my sentiments for this week.Make sure you do your own analysis before engaging the market.Best of luck to all.