EUR/USD: There is
still a valid ‘buy' signal on this pair, and it is rational to expect that the
pair would go further upwards, testing the resistance lines at 1.1350 and 1.1400.
After all, the resistance line at 1.1350 was tested last week. A continuous
movement above the support line at 1.1150 would make the bullish expectation
valid; otherwise, things would go bearish.
USD/CHF: This is
a bear market, and the desperate struggle between bulls and bears have
created rather high volatility here. Last week, it turned out that the price
tested the support line at 0.9250 a few times, but it was unable to break it to
the downside. The support line must be broken to the downside this week in
order for the bearish bias to be strengthened further. Should it fail to
happen, there would be a high risk of a bullish breakout.
Cable is currently strong and it should reach the distribution territory at
1.5700 this week. Nevertheless, a serious weakness could happen later this week
or before the end of the month.
USD/JPY: In spite of the struggles of bulls, the USD/JPY pair is still bearish in the short term. The only factor that can render the bearish trend useless is an event in which the price goes above the supply level at 125.00. Otherwise, the bearish outlook would be valid for the most part of this week.
dominant bias on this cross is bullish but the current price action in the
market is a threat to the dominant bias. This week and next week, the events on
this cross would be largely determined by what happens to the Euro; and
therefore a significant weakness in the Euro could make the cross tumble.
The material has been provided by InstaForex Company – www.instaforex.com