The USD/CHF plunged into
the support level at 0.9550 last week, closing above the support level. There
is a Bearish Confirmation Pattern in the chart, and further downwards plunge
could happen this week. However, a possible weakness in CHF, coupled with a
possible weakness in the EUR/USD, might aid a significant rally in USD/CHF.
EUR/USD: The
EUR/USD went upwards by 200 pips last week, and tested the resistance line at
1.1350. There is currently a shallow bearish retracement in the context of an
uptrend, but price is supposed to continue going upwards this week, reaching
other resistance lines at 1.1350, 1.1400 and 1.1450. A bearish movement could
force price to test the support lines at 1.1250 and 1.1200.
USD/CHF: This pair plunged into
the support level at 0.9550 last week, closing above the support level. There
is a Bearish Confirmation Pattern in the chart, and further downwards plunge
could happen this week. However, a possible weakness in CHF, coupled with a
possible weakness in the EUR/USD, might aid a significant rally in USD/CHF.
GBP/USD: From Tuesday to
Thursday, the Cable went north by 300 pips, reaching the distribution territory
at 1.1350. Nevertheless, the upward movement is not serious enough to pose any
threat to the dominant bias, which is bearish. This is even corroborated by
what happened on Friday – a downwards correction by 130 pips. This week,
further downwards pressure is possible because the Cable may be weak. For
example, the GBP/CAD should plummet before the end of the week (owing to an
expected stamina in CAD); and since GBP/USD is sometimes positively correlated
with the GBP/CAD, it may experience a vivid bearish movement.
USD/JPY: It is good to check
what is happening on other majors so that one can fathom the situations
surrounding a trading instrument of interest. The outlook on JPY pairs is
bearish in the long-term. The USD/JPY went sideways last week. It went further
downwards on Monday and Tuesday and then consolidated till the end of this
week. However, there should be a breakout this week, which might respect the
dominant bearish trend or cause a near-term rally, especially when USD is
strong.
EUR/JPY: This cross consolidated throughout last week,
which was something it also did the week before last week. This has caused the
bias to become neutral. The neutral bias would come to an end this week or
next, when a breakout occurs, which would most probably favor bears.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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