Analysis and strategy for week of Sep.20-24

Last week the Euro and the British pound have gained against the US dollar both broke out from their consolidation ranges. On Friday both pairs were showing that the dollar bears hesitated at the 61.8% fibo level previous downleg. 

At the same time the EURGBP could not decisively break above the 0.8390 high that has broken the short term downtrend, in fact it has failed on two attempts to extend the upside. The higher lows after the new high suggest an upcoming attempt to break higher therefore I will favor the Euro versus the Pound when trading against the dollar. 

The Swiss franc has corrected its recent strength against all major currencies but on Friday the EURCHF and GBPCHF was able to reject resitance levels showing bearish reversal candles with long uppers shadows touching confluence levels.


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