EUR/USD: This
currency trading instrument hit the resistance line at 1.1600, and then get
corrected lower. However, the Bullish Confirmation Pattern is valid in the
market, providing that the price does not go below the support lines at 1.1400
and 1.1350. It is expected that the price would rise from this area today or
tomorrow.
USD/CHF: This pair went down by
130 pips this week, and later bounced upwards after testing the support level
at 0.9450. The upward bounce is significant, since the Williams’ % Range period
20 is now sloping upwards, but the EMA 11 is still below the EMA 56. Would this
be a sustained reversal or temporary rally? Today we will see the answer.
GBP/USD: After testing the
distribution territory at 1.4750, the GBP/USD pair dropped down by 220 pips, now
below the distribution territory at 1.4550. There cannot be any jeopardy to the
bearish outlook unless the price drops further by another 200 pips this week –
an act that could lead to a bearish signal.
USD/JPY: The USD/JPY pair traded
higher on Tuesday, in the context of a downtrend. Unless the price goes above
the supply level at 109.00 (which would require a serious rally), there cannot
be an end to the current bearish bias. Right now, the rally that was seen
yesterday would be an opportunity to sell short at a better price.
EUR/JPY: Yesterday,
this cross bounced slightly upwards in a context of a downtrend. The upwards
bounce pales into insignificance when compared to the recent bearish outlook on
the market. Further bearish movement is possible, and the “sell” signal cannot
be jeopardized unless the price goes upwards by 300 pips (which seems unlikely
right now).
The material has been provided by InstaForex Company – www.instaforex.com
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