EUR/USD went further south yesterday, going below the support line at 1.2150.
The price is currently above the support line, but it may go below it again,
closing below it. The eventual target for bears is at the support line at
market went above the resistance level at 0.9900 briefly before closing below
it. It is expected that the price would go above that resistance level again,
closing above it. The bias in the market is bullish and with just a movement of
over 100 pips, the USD could reach parity with the CHF.
Cable tested the accumulation territory at 1.5500 before the current upward
bounce in the market. The upwards bounce is supposed to be transient, not going
above the distribution territory at 1.5600. It is likely that the accumulation
territory at 1.5500 could be tested again: the price could even go below it.
sudden stamina in the JPY caused this currency trading instrument to go south
on Tuesday. The southward movement was strong enough to lead to a Bearish
Confirmation Pattern on the chart. The price is now below the EMA 21 and the
RSI period 14 is below the level 50. A movement below the demand level at 119.00
would signify further weakness in the market.
EUR/JPY: The sudden strength in the Yen has caused the
EUR/JPY pair (and some JPY pairs) to go downwards by around 200 pips on Tuesday. The
demand zone at 145.00 has been tested and with further weakness in the market, the
demand zone would be tested again and possibly breached to the downside.
The material has been provided by InstaForex Company – www.instaforex.com