currency trading instrument found it difficult to go above the resistance line
at 1.1350. Price fell sharply on Friday, causing a formidable threat to the
ongoing bullish bias. A movement below the support line at 1.1100 would result
in a Bearish Confirmation Pattern in the market. A movement above the
resistance line at 1.1350 would strengthen the bullish outlook.
USD/CHF: This pair went upwards
170 pips last week. There are three factors that contributed to this: the USD
was strong in its own right on Friday, the CHF was weak against some majors,
including the USD, and EUR/USD plummeted on Friday. As long as these
factors are in effect, the USD/CHF pair would continue going upwards. Otherwise,
price would decline.
GBP/USD: The Cable went upwards
by 200 pips to test the distribution territory at 1.3250; prior to the bearish
retracement that was seen on Friday. The bias on the Cable is bullish in the
short term and bearish in the long term, and price ought to continue going
northward so that the short-term bullish move can be sustained. GBP pairs would
experience high volatility in September.
USD/JPY: The USD/JPY
pair consolidated from Monday to Friday, and then broke upwards on Friday. Since
price has been consolidating for about two weeks, the breakout on Friday is yet
to bring about any dominant bias in the short term. The bias would turn bullish
only after price goes above the supply levels at 103.00 and 103.50.
EUR/JPY: This cross has been flat for three weeks; plus
the breakout that occurred on August 26, 2016 was not significant enough to
bring about any news bias in the short term. The dominant bias on higher
time frames like daily and weekly charts is bearish, and for the month of
September 2016, it is expected that price would be trending lower and lower. The
outlook on JPY pairs remains bearish. Therefore, any rally that was seen ought
to be taken as an opportunity to sell short.
The material has been provided by InstaForex Company – www.instaforex.com