The recent week was characterized
by significant reversals in the markets; an event which led to new confirmed
signals on popular pair and crosses. This is especially possible with the new
lease of stamina in the EUR and the GBP, as the USD was suddenly caught in
exponential weakness. Even the JPY pairs have assumed a new bias (in most
cases). The new signals in the markets are expected to continue.
EURUSD
Primary trend: Bullish
It can now been seen that any
bearish threats on this pair has already been rejected successfully, as the
price rose significantly in the latest development in the market. There is now
a clean Bullish Confirmation Pattern on the chart, and the price could go on
beyond the resistance lines at 1.3100 and 0.3200 respectively. Within the next
several trading days, it would be sensible to seek long trades only.
USDCHF
Primary trend: Bearish
From the weekly high of 0.9750,
this pair dived by roughly 300 pips. The price is now trading below its formers
support levels (which are now resistance levels). The market appears to be
oversold, as indicated by some oscillators, but in reality this means that the
market is weak and would continue to trade lower. In the face of this fact, the
price may reach the support levels at 0.9400 and 0.9300.
GBPUSD
Primary trend: Bullish
It is clear that some vivid optimism has returned to the
market. Could this be called Mr. Carney’s effect? The time would tell whether
the new bullish bias would be sustained. However, based on the reality in the
market, the Cable is supposed to be going upwards in a significant bullish
mode, though that does not rule out occasional bearish pulls, which are not
supposed to take the price below the accumulation territory of 1.5000.
USDJPY
Primary trend: Bearish
A ‘sell’ signal has been formed on the USDJPY, following the
Bearish Confirmation Pattern that occurred in the market. Since then, the
USDJPY has traded sideways so far (for the market is volatile as a result of
deadly struggles between buyers and sellers). However, the downward movement
ought to resume in earnest. The price could reach the demand levels of 98.00
and 97.00. Meanwhile, the supply level at 100.00 is a barrier to any bullish
attempt.
Primary trend: Bullish
When it is said that the major bias on this cross is
bullish, it is precariously so. This is because there is no clear directional
movement in the price for now: both the EUR and the JPY are a kind of strong,
and one would need to be stronger than the other for the market to go upwards
or downwards. At the end, the EURJPY would have to respect the overall
direction of all the JPY pairs, and until it happens in such manner as a clear
signal, no new positions are advised.
Source: www.paxforex.com
For further articles, go to: http://www.paxforex.com/forex-blog
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