The GBP/USD went bearish
last week, breaking southward out of the recent equilibrium phase. The price
tested the accumulation territory at 1.5450 and later bounced upward from
there. The bias on the market is bearish and it is possible that the
accumulation territory would be tested again; it may even be breached to the
downside.
EUR/USD: This is a highly volatile market, though
things appear to favor the bears right now. There is a good support line at
1.0850, which was tried several times last year, but without success. For the
current bearish outlook to continue, the support line must be breached to the
downside. This requires a strong selling pressure.
USD/CHF: This
pair is one of the few majors which went in predictable directions last week.
From the support level at 0.9650, the price went upward by roughly 200 pips,
closing around the resistance level at 0.9850. There is a Bullish Confirmation
Pattern in the market and the price must continue to go further north for the
pattern to be valid. Therefore the targets for this week are located at the
resistance levels of 0.9900 and 0.9950. One thing can overturn this expectation
– a significant weakness in the USD. It also must be noted that it is unlikely
that the USD would reach parity again with the CHF this month, so long trades
should be handled with caution.
GBP/USD: The GBP/USD went bearish last week, breaking
southward out of the recent equilibrium phase. The price tested the accumulation
territory at 1.5450 and later bounced upward from there. The bias on the market
is bearish and it is possible that the accumulation territory would be tested
again; it may even be breached to the downside.
USD/JPY: There was an end to the protracted sideways
direction on this currency trading instrument as the price broke upwards,
moving upwards by 100 pips (testing the supply level at 125.00). Further
bullish effort was rejected at that supply level and price got corrected to the
downside. Since the outlook on JPY pairs is bearish, there is a possibility
that the demand level at 123.50 would be tested this week.
EUR/JPY: The EUR/JPY cross does not currently look
‘sexy’ (attractive); and since there is no clear sign of victory between the bull
and the bear, it is OK to stay away from the market until there would be a
trending movement as opposed to a choppy movement.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
What Super Traders Don’t
Want You To Know: Super Traders
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