Last week, the Cable
dropped by 320 pips from Monday to Wednesday, and rose steeply by 450 pips on
Wednesday and Thursday; only to consolidate on Friday. The price has been
trying to go above the distribution territory at 1.4500, which has been
refusing further northward movement. That distribution territory would be
broken to the upside this week, as the price moves further north.
EUR/USD: The
EUR/USD broke upwards last week, moving north by 280 pips on Wednesday and
Thursday. The market could continue going upwards but there is a possibility
that the bears might come in and push the price downwards. The EUR could be
seen weakening versus some majors this week.
USD/CHF: This pair dropped
massively last week, reaching the support level at 0.9650 and forming a Bearish
Confirmation Pattern in the market. This week would see the next direction in
the market, which would most probably favor the bulls, for the EUR/USD (which is
negatively correlated to the USD/CHF) might drop this week.
GBP/USD: Last week, the Cable
dropped by 320 pips from Monday to Wednesday, and rose steeply by 450 pips on
Wednesday and Thursday; only to consolidate on Friday. The price has been
trying to go above the distribution territory at 1.4500, which has been
refusing further northward movement. That distribution territory would be
broken to the upside this week, as the price moves further north.
USD/JPY: This pair broke south
on March 16, 2016. On Thursday, the price moved further southward; seriously
this time around. Altogether, there was a drop of about 300 pips this week, and
the demand level at 111.00 has been tested vigorously, though it seems
impregnable to the bears now. There has been a slight upward bounce from that
demand level, which would end up being a significant rally because the USD/JPY
might gain lots of stamina this week.
EUR/JPY: This cross simply
consolidated throughout last week, without trending upwards or downwards
significantly. There are mixed signals in the market: the EMA 11 is above the
EMA 56 whereas the RSI period 14 is below the level 50. It is better to stay
away from the market until there is a clear directional movement, which would
happen this week. When this happens, it would most probably favor the bulls,
for the outlook on JPY pairs is bullish this week.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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