EUR/USD: Since last week, the
EUR/USD pair has moved upward by at least 300 pips. This resulted in a vivid
Bullish Confirmation Pattern in the market. It is possible that the price
would keep on going northwards. The next targets to be reached are the resistance
lines at 1.1150 and 1.1200.
USD/CHF: Surprisingly, the bias
on the USD/CHF pair is also bullish – just like the bias on EUR/USD. These pairs are supposed to go in opposite ways, but there are rare occasions like
this one, in which both lines would be going in the same direction (like the
current price action on both pairs). But things would go off balance
soon and, the EUR/USD pair will go further upwards as the USD/CHF pair will plummet. The only thing that can end the current bullish outlook on USD/CHF is an event in which the CHF itself becomes very strong. This is
expected before the end of this week.
GBP/USD: The cable is also
making some bullish effort, though things look dicey in the market. It would be
OK to stay away from this market right now until there would be a confirmed
directional bias in the market.
USD/JPY: The price broke downwards from the
consolidation phase it had recently experienced. It tested the demand level at
123.00. This esulted in a ‘sell’ signal for the price could go
further south. In addition, the price is expected to go further downwards
because the yen might be strengthening this week.
EUR/JPY: The EUR/JPY pair traded further upwards on Monday; thereby adding to the bullish outlook that was started last week. The supply zone at 137.00 has been tested, and in case it is broken to the upside, bulls would target another supply zone at 138.00.
The material has been provided by InstaForex Company – www.instaforex.com