EUR/USD: EUR/USD has been rising upwards over the last week and consolidating in the end of the week. A movement above the
resistance lines at 1.1050 and 1.1100 would result in a Bullish Confirmation
Pattern on the market. Whereas a movement below the support lines at 1.0900 and
1.0850 would simply reinforce the recent bearish bias in the market. Right now,
long trades are not recommended here until there is a clean indication that bears are leading.
USD/CHF: Surprisingly, the
USD/CHF pair did not come down as deep as the EUR/USD pair has gone upwards.
Nevertheless, the inability of USD/CHF to go above the resistance level of 0.9650 means that bulls should approach this market with caution. In case the
price fails to do a meaningful rally this week, there might be a further bearish
GBP/USD: The cable closed below
the distribution territory at 1.5550 last week, generating a clean «sell»
signal. With further bears' power, the accumulation territories around 1.5450 and
1.5400 would be tested. In case the price moves above the distribution
territories at 1.5550 and 1.5600, the current «sell» signal would be
USD/JPY: What is happening on the USD/JPY pair signifies a serious battle between bulls and bears. Although the recent bullish bias in the market remains intact, it is wise to stay away from this pair until there is a clean directional bias in the market. This clean directional bias should be seen this week.
EUR/JPY: This cross closed on a bullish note last
week, moving towards the supply zone at 136.00. This has resulted in a clean
bullish outlook, which should continue to hold out unless the yen gains a
considerable amount of stamina. This is a situation that can halt further
bullish movement on this market.
The material has been provided by InstaForex Company – www.instaforex.com