EUR/USD: Now, the
bearish correction is strong enough to pose a threat
to the recent bearish outlook on this market. Any movement below the support line at 1.1100
would underline the ongoing powerlessness of bulls. It is not sensible to go long on this market.
strength in USD, coupled with the weakness in CHF, is responsible for
the new uptrend on this currency pair. The price is above the EMA 11 now, which
in its turn, has just crossed the EMA 56 to the upside. The Williams' % Range
period 20 is also in the overbought territory. There is a strong probability that
the price could go further upwards by another 200 pips before the end of this
Cable dropped by over 270 pips this week, testing the accumulation territory at
1.5450. This is already a morbid threat to the recent bullish trend. A drop
below the accumulation territory at 1.5350 would result in a complete invalidation
of the bearish trend.
USD/JPY: As it was expected, the USD/JPY broke above the demand level at 120.50, ending the equilibrium phase that had been lasted for several weeks. This resulted in a clean Bullish Confirmation Pattern, which would be valid as long as the price is able to stay above the demand level of 120.50. Within the next
few days, the supply levels at 121.00 and 121.50 might be attained.
weakness in EUR has made this cross to retrace seriously, reaching the demand
zone at 134.50. A further drop is possible, especially if the EUR continuous weakening
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