The USD/CHF went down on
Monday and Tuesday, dipping into the support level at 0.9450. From that support
level, further downward movement was rejected as the price started a smooth
rally, which took it above the support level at 0.9700. This has resulted in a
bullish signal: the price is expected to rally further this week. The outlook
on the USD is now bright.
EUR/USD: This
pair moved upwards on Monday and Tuesday, tested the resistance line at 1.1600,
and then started a bearish movement. From the resistance line at 1.1600, the
price dipped by 200 pips, to close at 1.1403 on Friday (May 6, 2016). Bears
would target the support lines at 1.1350 and 1.1300 this week, because some
weakness is expected in the EUR.
USD/CHF: The USD/CHF went down
on Monday and Tuesday, dipping into the support level at 0.9450. From that
support level, further downward movement was rejected as the price started a
smooth rally, which took it above the support level at 0.9700. This has
resulted in a bullish signal: the price is expected to rally further this week.
The outlook on the USD is now bright.
GBP/USD: After testing the
distribution territory at 1.4750, the GBP/USD dropped down by 320 pips, closing
below the distribution territory at 1.4450. This kind of southward reversal has
already resulted in a bearish outlook on the market. The GBP should be seen
strengthening versus some currencies, though it might be facing some
difficulties as regards a rally against the USD, because the USD would be
strong this week.
USD/JPY: The USD/JPY only moved sideways
last week, in the context of a downtrend. The bearish bias on the market is
still valid, and further downwards movement is possible. The only exception
being that, a possible rally in the USD might make it somewhat challenging for
the bears to push the price further downwards this week.
EUR/JPY: This
currency trading instrument also consolidated throughout last week, with very
short-term upwards and downward swings in the market. The bears are still
willing to push the price lower; since the outlook on JPY pairs is bearish
right now. It is possible that the price would test the demand zones at 121.50,
121.00, and 120.50 this week.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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