This week, the chart speaks louder than any analysis I would write. The USDCHF chart is finishing bottoming on both daily and weekly chart and should spike up soon. This would also bring down stubborn EU and take it possibly towards 1.07xx. On GU, if the current top stays unbroken, we should re-visit 2600 again, possibly lower, if it breaks. There are no major news on monday and tuesday for EU, but important unemployment news for GU on tuesday morning. The forecast is very optimistic and since the UK economy is turning into a disaster, I don’t expect the numbers to be anywhere as good as predicted. The most important days next week will be wednesday and thursday, as we get important inflation data from the US. I expect EU and GU to correct down until then…and then it all depends on the data. If the US inflation increases above the expectations, both EU and GU should drop hard, if not, we might get a new bull run. But the price action shortly before the news will give us an idea about whats going to happen, as it does in most cases. Right now I would be only speculating, as first we need to wait on how the week starts. But looking stricly at the charts, USD bulls are better positioned into next week.
p.s. EURGBP chart favors GU bears over EU bears, when we get a bearish week. Important to watch that chart also.
