dominant bias remains bearish here, irrespective of a formidable rally in the
context of a downtrend which occurred last week. This price action would be
taken as a short-selling opportunity unless the resistance line at 1.1100 is
USD/CHF: This market first went upwards last week, but gains made by bulls were forfeited because of the perceived stamina in CHF. Should CHF continue strengthening, the bearish correction may continue, which can eventually invalidate the current bullish bias.
GBP/USD: The cable dropped by 200 pips last week. It closed below the distribution territory
at 1.5300. It is not logical to go long in this market unless the distribution
territories at 1.5500 and 1.5550 are overcome to the upside – something that
would require a very strong rally.
pair is also bullish and the price may continue its upward journey as long as
JPY is weak. The price moved upwards by 250 pips last week closing above
the demand level at 124.00. Although, the pair consolidated around the end of
last week. There should probably be a breakout to the upside enabling the
price to reach supply levels at 124.50 and 125.00 this week. The outlook on
most JPY pairs is bullish for this month.
EUR/JPY: The EUR/JPY pair took a nice bullish run last week, moving upwards from the demand zone at 133.50 and going far above the demand zone at 136.00. This movement of roughly 300 pips has resulted in a clear Bullish Confirmation Pattern in the chart. This is a situation that could continue this week. The outlook is already bullish.
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