The currency markets are in vivid Trend Confirmation Patterns – both bearish and bullish. Recently, prices have become very volatile as they approach major accumulation and distribution territories. But it is expected that those territories would be breached as the markets go in the direction of the overall biases. Thus, market participants are bound to make more gains as they take more risk in the favor of the current biases. We’re naturally inclined to welcome gains and abhor losses, yet losses must be anticipated before gains can come. The less the magnitude of the stake, the less the expected returns and vice versa.
EURUSD
Primary trend: Bearish
The EURUSD is bearish and it is expected to continue being so, even irrespective of the current volatility and turbulence in the markets. There is a Bearish Confirmation Pattern on the chart (as supported by the indicators). Any short-term rallies ought not to take the price above the resistance line of 1.3000, for the current outlook not to be in jeopardy. Meanwhile, the price could reach the support line of 1.2700 within the next several trading days.
USDCHF
Primary trend: Bullish
Some resistance levels are acting as a barrier to the bulls’ interest, but those levels would soon be breached to the upside. The bullish scenario continues to be valid, as the indicators as well support it. The ultimate target on this pair is 0.9800, in spite of the hurdles to be overcome. Foreseen bearish attempts would not take the price below the 0.9500, otherwise, there would be a serious threat to the bullish outlook.
GBPUSD
Primary trend: Bearish
The bears are still present here. They are not only present, but they hold sway and in the face of this, any short-term rallies would end up being fake-outs. Normally the short-term rallies are not supposed to push the price upwards beyond the distribution territory at 1.5400. There is a need for the price to go below the market territory at 1.5200, for the bears’ interest to continue. There must be perpetual price position below the aforementioned market territory.
USDJPY
Primary trend: Bullish
Northward is the outlook on this popular major, though the price has not moved determinedly upwards in recent times. In spite of the recent volatility in the market, accompanied by a sideway move. One may think the market is indecisive, but one needs to be reminded that that was the condition on the market before the price zones at 100.00 and 102.00 were breached to the upside. The supply zone at 104.00 may soon suffer the same fate.
EURJPY
Primary trend: Bullish
This instrument has not made any significant bearish or bullish move within previous trading days, but the major outlook is bullish and it is expected to be so. In spite of stealth attacks from the bears, the bulls’ have succeeded in preventing the price to be dragged determinedly downwards. Now, it could be safely said that the demand level at 131.50 has been an effective check on the recent bearish attempts. The supply zone at 133.00 is the ultimate target.
This article is concluded with the quote below:
“Many active traders make the mistake of assuming that a winning system for swing trading… needs to be complicated. On the contrary, the best trading strategies are typically the most simple because they can be more easily and consistently followed.” – Deron Wagner
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