EUR/USD: This is
a bearish market. Based on what has been happening here since Monday, it would
be nice to sell in the context of the downtrend. The support line at 1.0950
was tested at the beginning of the week, owing to the gap down that occurred then. Now it is assumed that the same support line would be tested again today or
USD/CHF: Following the severe bearish plunge that happened on Monday, the USD/CHF pair has rallied vividly. The price has gone upwards by 250 pips from the support level of 0.9250 testing the resistance level of 0.9500. There is a shallow bearish retracement in the market, but the resistance level of 0.9500 could be tested again and eventually breached to the upside.
forecasted, the GBP/USD pair broke below the distribution territory of 1.5650,
testing the recalcitrant accumulation territory around 1.5600. The recent
equilibrium phase is over and it has resulted in a Bearish Confirmation
Pattern. There is a possibility that this is the beginning of a protracted
USD/JPY: It would
be recommended that the USD/JPY pair should be avoided until there would be a
clear directional movement. There are short-term swings which could be
deceptive, but there would be a strong trending movement once the supply level
at 124.00 is breached to the upside or when the demand level at 122.00 is
breached to the downside.
EUR/JPY pair has started moving sideways and unless there is a significant event
affecting EUR (especially an event that makes the currency move seriously),
the sideways movement would continue. However, there would be a breakout
in favor of the bear or the bull soon.
The material has been provided by InstaForex Company – www.instaforex.com