EUR/USD pair has vigorously tested the support line at 1.0950 before the current upwards bounce. The price gained over 140 pips. Nevertheless, the bias cannot turn
bullish as long as the price is below the resistance line at 1.1200.
pair has been able to maintain its bullish stance, though momentum is
thinning out. When momentum in the market increases (as that is inevitable),
bulls might challenge the resistance level at 0.9500. That resistance level
has been tested several times this week. It must be broken to the upside, so
that the buying pressure can continue.
GBP/USD: This is a weak market, and it might break
below the accumulation territories at 1.5300 and 1.5250. There is a clear Bullish Confirmation Pattern in the chart: the EMA 11 is below the EMA 56 and
the RSI period 14 is below the level of 50. More selling pressure is expected.
USD/JPY: As expected, the USD/JPY pair broke below the supply levels at 122.00, 121.50, and 121.00. The demand level at 120.50 has already been tested, and it could be breached to the downside because this is the beginning of a strong southward movement. In addition, some fundamental figures are expected to be unveiled today, and they would have an impact on the market.
EUR/JPY: The market is bearish now. According to the recent
price action, it looks wise to sell on rallies in the context of a downtrend. The price has dropped by over 600 pips over the past few weeks, and further drop is
expected. This outlook also works for most JPY pairs.
The material has been provided by InstaForex Company – www.instaforex.com