pair has continued to trend downwards – just in the opposite bias of the USD/CHF movement. From the resistance line at 1.2550, the price dropped sharply and closed
below the resistance level at 1.2300. The price still has a lot of room to go
further south and eventually, the support line at 1.2250 could be tested.
USD/CHF price rose from around the support level at 0.9550, and is trended upwards
significantly. The price nearly touched the resistance level at 0.9850. This is
a move of close to 300 pips, and it has led to a strong Bullish Confirmation
Pattern. With further strength in the Greenback, the price may go above the
resistance level at 0.9850.
GBP/USD: It is
not yet logical to seek long trades on the Cable, since the current rally may
be seen as another opportunity to open short trades. The outlook on the market
is bearish: the price may challenge the accumulation territory at 1.5550 (which
has been tested already). While one may target that accumulation territory in
the near-term, it would require extraordinary weakness in the market for the
accumulation territory to be breached to the downside.
market has the potential to go further upwards. The price may go above the
supply level at 119.50 and may target another supply level at 120.00 after
EUR/JPY: As a result of the weakness in the EUR, this
currency trading instrument may still go downwards. The bias is bearish: the
EMA 11 is below the EMA 56 and the RSI period 14 has gone below the level 50. In
the face of the extant Bearish Confirmation Pattern in the chart, the price may
go further downwards.
The material has been provided by InstaForex Company – www.instaforex.com