It is well-known that events move the markets, and that what relevant personalities say (for example, central bank governors/presidents) have short-term or long-term impacts on the markets. This remains a fact, and it has affected the markets in recent times. Looking at the popular currency instruments, they have continued to go in the direction of the dominant biases, irrespective of occasional counter-trend waves. The JPY pairs are currently strong.
EURUSD
Primary trend: Bearish
This pair has continued to trend downwards, in agreement with the bias on the chart. If you have been following the trend since the ‘sell’ signal was generated, you would have seen that the pair has move in the forecasted direction, irrespective of occasional counter-trend moves. Occasional counter-trend moves are expected (and they are something normal). The price could get further downwards towards the support line at 1.2950.
USDCHF
Primary trend: Bullish
This enigmatic pair has continued to move in a slow and tardy manner, albeit to the upside (for such is the characteristic of the pair). There is a Bullish Confirmation Pattern on the chart, and the latest pullbacks in the price have been negligible so far. It is thus expected that the pair would continue to shrug off the bearish threats on it. It may soon reach the resistance level of 0.9550, or possibly break it to the upside.
GBPUSD
Primary trend: Bearish
It can be seen that the optimism surrounding the Cable has disappeared, though this may return as the Bank of England is possibly expected to have a new governor (Mark Carney by name). This may potentially cause a new lease of strength in the Cable (otherwise the Cable would be doomed to continue trending downwards further). The expected Midas Touch from Mark could push the Cable upwards, though the current trend is valid.
USDJPY
Primary trend: Bullish
The USDJPY trended lower towards the demand level of 97.00, in what could be some noteworthy bearish retracement on the chart. That bearish retracement did not violate the extant bullish trend, for the Bullish Confirmation Pattern has held out till now. Right now, the bullish bias has been resumed and the price could go towards the psychological supply level of 100.00 within the next several trading days.
EURJPY
Primary trend: Bullish
Since all the JPY pairs tend to be positively correlated (i.e. they all go downwards when the Yen is very strong, and they all go up when the Yen is very weak), it is not a wonder that the EUR, though not strong at the moment, has been going upwards against the Yen. This drives home the lesson that currency trading is all about matching weak currencies against strong currencies. There was a recent ‘sell’ signal on the chart, which was quickly rendered invalid as the cross assumed a clear uptrend.
This article is ended with the quote below:
“If you are active in the market, you need to know what you are doing… This is a time for neither fear nor greed. For those who are sharp and well trained, this could be a time for tremendous profits.” - Dr. Van Tharp (Source: Vantharp.com)
Source: www.paxforex.com
For further articles, go to: http://www.paxforex.com/forex-blog
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