week, the market has enjoyed a measure of bullish run before the run was
checked at the resistance line of 1.1050. Since then, there has been a bearish
retracement of about 170 pips. However, the markit remains bullish unless the
support line at 1.0800 is violated to the downside.
USD/CHF: This pair experience a rally in the
context of a downtrend now. It is called downtrend because the EMA 11 is still
below the EMA 56; though the Williams’ % range period 20 is reacting to the
bullish attempt now. The only factor that can bring about a confirmed bullish bias
is an exponential weakness in USD.
GBP/USD: Generally, the cable has been moving sideways this week. As it was mentioned in the previous analysis, there is a distribution territory around 1.5000 and an accumulation territory around 1.4800. There must be a break above the distribution territory or a break below the accumulation territory before a strong directional movement can be seen.
USD/JPY: Since touching the demand level at 118.50, the USD/JPY pair has bounced upwards. However, the upward bounce can be seen as a short-term rally in a context of a downtrend, which gives another good opportunity to go short. Unless the supply level at 121.00 is breached to the upside, the bearish outlook remains valid.
cross has become weaker. It has accumulated
this week, almost giving up the little gain. The current price action testifies to the ongoing bears’ domination on the market and a movement below the demand zone around 129.00 is likely to result in a
clean Bearish Confirmation Pattern in the chart.
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