EUR/USD: This is a highly volatile market, though
things appear to favor bears right now. There is a good support line at
1.0850 which was tested 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.
pair is one of a few majors which moved 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 the US dollar is unlikely to reach parity again with the Swiss franc this month, so long trades
should be handled with caution.
GBP/USD: The GBP/USD pair 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). Since there is no clear sign of victory between the
bull and the bear, it is OK to stay away from the market until a clear
trend will appear as opposed to a choppy movement.
The material has been provided by InstaForex Company – www.instaforex.com