week, this pair went down towards the support line at 1.0950, but further
bearish movement was rejected around that support line. From there, the price
went upwards by over 200 pips, closing at 1.1158. This bullish movement has put
the recent bearish outlook in jeopardy. In case the price crosses the
resistance line at 1.1250 to the upside, it would no longer be logical to open
short trades here. Moreover, the movement of the pair would continue to be
determined by the events in the Eurozone and they would have an impact on the
movements of other EUR pairs as well.
currency trading instrument did not go upward significantly last week, for the
resistance level at 0.9500 prevented the price from experiencing further
bullish movement. In order to let the bullish bias continue to be valid, that
resistance level must be broken to the upside; otherwise a serious bearish
correction could happen.
GBP/USD: The cable went downwards by 250 pips last
week, testing the accumulation territory at 1.5350. From that territory, the
price rallied by 150 pips, but still in the context of a downtrend. Unless the
distribution territory at 1.5600 is overcome, this could turn out to be an
opportunity to sell short at a better price.
USD/JPY pair went downward by 200 pips, reaching the demand level at 120.50. It also
rallied by 200 pips last week. This week would determine the dominant bias in
EUR/JPY: Last week, the EUR/JPY pair tested the demand zone at 133.50 several times, but it was unable to break it to the downside. From that demand zone, the price skyrocketed by 350 pips, closing around the supply zone at 137.00. Further bullish movement towards the supply zone at 138.00 would result in a clear Bullish Confirmation Pattern on the market.
The material has been provided by InstaForex Company – www.instaforex.com