The USD/JPY dropped 450
pips last week, testing the demand level at 106.50. The next target to be
reached is the demand level at 105.50, since there is a Bearish Confirmation
Pattern in the market. There is also a possibility of bullish reversal this
week.
EUR/USD: This
pair shot upwards on Friday, overturning the bearish outlook on the market.
Since price has moved upwards by 220 pips, a bullish signal has been formed. However,
EUR needs to continue to be stronger than USD for this pair to continue moving
upwards; otherwise things could reverse on favor of bears. After all, the
outlook on EUR is bearish for the month of June.
USD/CHF: The USD/CHF
consolidated from Monday to Friday and then plummeted on Friday. The bearish
movement was very serious – occurring opposite to the direction of the EUR/USD.
Further bearish movement could cause price to reach the support levels at
0.9700 and 0.9650 this week.
GBP/USD: Cable went up towards
the distribution territory at 1.4700, where further rally was halted as price
declined towards the accumulation territory at 1.4400. That was a 300-pip
movement. Despite determined efforts from bears, price was unable to go below
the accumulation territory at 1.4400, and as such, there is a rally expectation
on the GBP/USD. GBP pairs would move seriously this month – in bearish and
bullish modes.
USD/JPY: The USD/JPY dropped 450
pips last week, testing the demand level at 106.50. The next target to be
reached is the demand level at 105.50, since there is a Bearish Confirmation
Pattern in the market. There is also a possibility of bullish reversal this
week.
EUR/JPY: This
cross tested the supply zone at 124.00, and then dropped by 300 pips last week.
Price closed at 121.07 on Friday, just below the supply zone at 121.50. Further
decline is possible, which might take price towards demand zones at 120.50 and
120.00. There is also a possibility of reversal this week.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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