currency trading instrument is currently volatile; though a closer look would
reveal that the dominant bias is bearish. This would hold as long as the
resistance line at 1.1300 is intact. More selling pressure may enable the price
to reach the support lines that were first tested this week as a result of the
gap-down that occurred at the market open.
week has been characterized by a deadly struggle between the bull and the bear
with bull gaining the upper hand. The price could continue going further
upwards, especially as the EUR/USD pair is weakening further. The price may test the
resistance levels at 0.9400 and 0.9450.
GBP/USD: The GBP/USD pair is moving sideways in spite of a fact that other majors are showing high volatility. The price is moving sideways this week, but there is bound to be a breakout this week or next. Either the price would close above the distribution territory at 1.5800, or it can close below the accumulation territory at 1.5650. A close below the accumulation territory at 1.5650 is more likely.
USD/JPY: There is
a sell signal on this pair. The price is below the EMA 56 and the RSI period
14 is below the level of 50 showing a clean Bearish Confirmation Pattern in the
chart. The pair is expected to become weaker this month. So,
a long trade is currently not advisable here. The next target for bears is
at the demand level of 121.50.
cross has remained volatile. However, it is more likely that the price would trend downwards this week
or next. That is the outlook for the market.
The material has been provided by InstaForex Company – www.instaforex.com