EUR/USD: This pair is now one of the strongest among
the majors, having moved upwards by 250 pips this week. The resistance line at
1.1200 has been tested and there is a high possibility that it might be breached
to the upside. In case it happens, the price might target the resistance line
it was forecasted, the USD/CHF pair soon went into an opposite direction with the
EUR/USD pair. Owing to the weakness in the USD, USD/CHF dropped by 200 pips
yesterday before the current slightly upward bounce. The price could go further
south: a movement below the support level at 0.9650 would lead to a clean
Bearish Confirmation Pattern on the chart.
GBP/USD: As it was forecasted yesterday, the cable was
able to move higher and this has caused a bullish signal in the market. The
price is above the EMA 11, which is in turn, above the EMA 56. The RSI period
14 is also above the level 50. In case the distribution territory at 1.5650 (which
has already been tested) is breached to the upside, the next target for
bulls would be the distribution territory at 1.5700.
USD/JPY: The USD/JPY pair trended downwards yesterday,
moving below the supply level at 124.50. Unless the supply level is overcome
again, the price has the tendency to go further south. So the next target could
be the demand levels at 123.50 and 123.00. Some fundamental figures are
expected today and they can have a huge impact on the market.
EUR/JPY: This cross has also moved upwards by over 250
pips this week. Since the price is now above the demand zone at 138.50, it is
rational to conclude that the supply zone at 139.00 would soon be attained.
The material has been provided by InstaForex Company – www.instaforex.com