EUR/USD has consolidated so far this week, all in the context of an uptrend. On this kind of market, a breakout to the upside or to the downside is very much
likely, with a breakout to the upside having a higher possibility of happening.
pair continues to be volatile as the struggle between bulls and bears continue. As it was mentioned last week, the support level at 0.9250 should be breached to the downside. So, an existing bearish bias would be made stronger. Otherwise, there would be a risk of a significant upward movement.
pair has moved upwards by at least 110 pips this week. Since the price rose
from the accumulation territory at 1.5200, it has moved upward by over 450
pips. The Bullish Confirmation Pattern is very strong in the chart, and thus,
the bullish outlook would be rational as long as the price is able to stay
above the accumulation territory at 1.5500.
USD/JPY: In spite
of the consolidation that started last week, the USD/JPY still generate sell signals. The price is below the EMA 56 and
the RSI period 14 is below the level of 30. When a breakout does occur in this
market, it is likely to be forwarded to the downside.
EUR/JPY: the price has been moving sideways since last
week until now. A breakout is expected
very soon, either above the supply zone around 140.00 (which would signify a northward
journey) or below the demand zone at 138.00 (which would signify a southward
journey). To sum it up, whatever happens to the EUR would determine what would
The material has been provided by InstaForex Company – www.instaforex.com