EUR/USD: Owing to
the exponential stamina in the euro, this pair skyrocketed this week. The pair closed above the support line at 1.1150, an area where the battle is hot, as bears are trying their best to keep bulls from pushing the price
further upwards. This is a critical phase in the bullish journey of this pair,
and should the pair fail to move further upwards, there could be a reversal.
market is highly volatile, for it is kept under pressure by bearish forces.
There is a Bearish Confirmation Pattern on the chart and bears would
continue to prove their strength as long as the EUR/USD pair is strong.
Cable trended seriously upwards this week, nearly testing the distribution
territory at 1.5500, before easing. The easing is seen as a transitory reversal
in the context of an uptrend, and unless the accumulation territory at 1.5200
is breached to the downside, the bullish outlook would be far from being over.
USD/JPY: Owing to
the weakness of the JPY, the USD/JPY pair has broken to the upside, moving above the
EMA 56, while the RSI period 14 is above the level 50. This is a bullish
signal, which would be stronger only when the supply levels at 120.00 and
120.50 are breached to the upside.
EUR/JPY pair has continued its bullish movement, even when it was thought that there
was going to be a reversal. The market is like a flowing river and it pays to
go with the flow. There has been an upward movement of 500 pips this week,
which is enough to show that the bull has gotten lots of stamina. The supply
zone at 134.50 is now being threatened by the bull.
The material has been provided by InstaForex Company – www.instaforex.com