The currency market instruments have been moving in a determined and predictable manner. The JPY pairs have been very weak, while the GBP and the EUR are strong. The USD is weak. However, there could soon be some pullbacks in the bullish biases (no space shuttle can go upwards indefinitely). The pullbacks could be temporary or be the harbinger of new determined biases. The trader needs not repine as a result of this, as long as time-honored trading principles are employed.
EURUSD
Primary trend: Bullish
This is a strong bullish market. Since late May 2013, EURUSD has moved upwards by over 430 pips. The price is thus breaking more and more resistance lines, though there may be some bearish pullbacks along the way, it is possible that the markets would continue to trend upwards. The aforementioned pullbacks are not supposed to pull below the price below the support line of 1.3200 at worst. Otherwise, the extant bias could be in jeopardy.
USDCHF
Primary trend: Bearish
In a direct opposite manner to the EURUSD, this pair is going downwards in a predictable manner. In the face of possible rallies (which could prove to be short-term in nature), the price could reach the support levels of 0.9100 and 0.9000 respectively. The pullback ought not to take the price above the resistance level of 0.9400. There is still much room for the selling pressure and short trades can be sought.
GBPUSD
Primary trend: Bullish
The optimism around the Cable is still extant, and so, it is normal to expect it to continue its northward quest. This means that it is probable that the price reach the distribution territories of 1.5800 and 1.5900. It is, however, unlikely that the price could touch or breach the distribution territory of 1.6000 very soon, let alone breaching it to the upside. Meanwhile, any probable bearish threat ought not to take the price below the accumulation territory of 1.5600.
USDJPY
Primary trend: Bearish
This is a weak market, and it would continue to be as such until further notice. There is a Bearish Confirmation Pattern on the chart; as supported by the indicators. One would then need to notice that, any rallies on this market have often given great short-selling opportunities. This is exactly the strategy being adopted here for now – sell-on-rallies. As long as the Bearish Confirmation Pattern on the chart continues to be valid, short trades ought to be sought.
EURJPY
Primary trend: Bearish
Since our model gave a short signal on this currency instrument (which was about a few weeks ago), it has gone down by almost 500 pips. Nevertheless, this is not without occasional strength in the market; just as the situation is really now. The present rally could just be another selling opportunity in the context of the currently weak market. The price would continue falling irrespective of any bullish retracement, and should this prove to be so, the cross could give up all its recent gains.
This article is concluded with the quote below:
“Just surround yourself with successful people. Read about what's worked for them. They'll often be a great barometer for new opportunities, because success often breeds more success.” – Joe Ross.
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