There have been interesting developments in the
markets as currency trading instruments experience significant reversals. For
example, the EURJPY was able to break out in the direction of the bears, after
some protracted consolidation phase. The price went below the supply zone of 140.00,
and it is expected to continue going down further.
EURUSD
Dominant
bias: Bullish
In an effort to become positively correlated
with the GBPUSD, this pair has gone seriously bullish. From the support area of
1.3550, the price shot upwards by over 150 pips. Soon, the price would be
trading above the resistance line at 1.3700 (which is currently being
challenged). The ultimate target for the week is at the resistance line of 1.3800.
Meanwhile, the support line at 1.3600 should act as a hurdle to the bears’
threats.
USDCHF
Dominant bias: Bearish
There is now a Bearish Confirmation
Pattern on this pair, as a result of the sudden weakness in the USD that
started recently. The indicators on the chart show this, plus the fact that the
price has tested the support level of 0.8900 before bouncing upwards. The
upwards bounce should be something temporary, because the price is going to
test that support level again and again; until it finally breaks it to the
downside. The next target is at the support level at 0.8850.
GBPUSD
Dominant
bias: Bullish
The
Cable moved upwards recently by about 250 pips, topped at the distribution
territory of 1.6650, before the price nosedived. The price is now trading below
the distribution territory of 1.6500, although the bullish bias is still valid
in the market. There are mixed signals on the chart in that the current bearish
threats are formidable; but as long as the price stays above the 1.6400, the
bullish bias is a valid thing.
USDJPY
Dominant bias: Bearish
Before the
present bearish reversal in this market, it was going upwards in a limited
manner. Now the price has plummeted seriously, testing the demand level at 102.00.
That demand level would definitely be tested again, especially in the face of
the extant selling pressure in the market. Once the demand level is again tested
and broken to the downside, the next target in the market would be the demand
level at 101.00.
EURJPY
Dominant bias: Bearish
There have been interesting developments in the markets as
currency trading instruments experience significant reversals. For example, the
EURJPY was able to break out in the direction of the bears, after some
protracted consolidation phase. The price went below the supply zone of 140.00,
and it is expected to continue going down further. The supply zone at 142.00
would act as a barrier to any bullish possibility. It is a normal thing to be
caught by sudden fundamentals. Therefore, one would need to capitalize on the
impact caused by the fundamental, no matter the direction of the price.
This forecast is concluded with the quote below:
“There’s only one way to make money trading, and that is
testing, testing, testing… Take a trading strategy or a trading idea, and test
it rigorously. And sometimes you’ll be surprised by the outcome…” - Markus Heitkoetter
Source: www.tallinex.com
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