The EUR/JPY dropped by
450 pips last week, owing to the strength in the Yen. Even the bullish effort
on the EUR was unable to prevent the smooth southward movement. The price
reached the demand zone at 126.00, and it could go below it despite the current
upwards bounce present in the market. The upward bounce could end up being another
opportunity to go short.
EUR/USD: This pair went upwards by 220 pips last week,
topping at the resistance line at 1.1350, before the ongoing shallow
retracement, which might proffer new long opportunities. The price is above the
EMA 56 (which itself is below the EMA 11). Should the Williams’ % Range period
20 saunter into the oversold territory, another “buy” signal might be
triggered.
USD/CHF: There is a strong
Bearish Confirmation Pattern in the USD/CHF 4-hour chart. Price dropped by more
than 250 pips last week, going briefly below the support level at 0.9700 before
coming upwards a bit. Since the USD is weak against the EUR and the CHF, it is
logical to conclude that the USD/CHF price would come further south this week,
testing the support levels at 0.9700 and 0.9600.
GBP/USD: This Cable simply traded sideways last week,
though in the context of an uptrend. There is going to be a breakout this week,
which would either take the price above the distribution territory at 1.4600,
supporting the recent bullish outlook; Or the price would go below the
accumulation territory at 1.4350, leading to a bearish signal.
USD/JPY: The USD/JPY dropped
sharply last week – in a continuation of the strong bearish bias that started
on January 29, 2016.Last week, the price dropped by 600 pips (from the weekly
high on Monday) before the current upward bounce. In spite of the current
near-term rally in the context of a downtrend, there is still a possibility of
further southerly movement.
EUR/JPY: The EUR/JPY dropped by
450 pips last week, owing to the strength in the Yen. Even the bullish effort
on the EUR was unable to prevent the smooth southward movement. The price
reached the demand zone at 126.00, and it could go below it despite the current
upwards bounce present in the market. The upward bounce could end up being
another opportunity to go short.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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