EUR/USD: A drop
over 420 pips last week has established the weakness on the EUR/USD. There
is a Bearish Confirmation Pattern on the market now: the price would go further
downwards this week, testing the support lines at 1.0950 and 1.0900. More
intense bearish pressure could even take the price beyond these support lines.
pair has turned bullish. The price trended upwards from the support level at
0.9150, testing the resistance level at 0.9450. That is a movement of 300 pips and further northward journey is possible. The only challenge to this
expectation is a possible stamina in CHF.
GBP/USD: On the cable, the last week was characterized by serious battle between bulls and bears, but at the end of the week, the bears gained the upper hand. However,
the recent bullish bias would be violated only when the accumulation territory
at 1.5400 gets breached to the downside. The bullish bias is seriously threatened
– it would be invalid only after the aforementioned accumulation territory is
USD/JPY: The USD/JPY pair moved upward by 200 pips last week. The upward journey started at the demand level of 119.50 and it has gone beyond the demand level at 121.50. This bullish journey has put the end to the recent protracted equilibrium phase on the market: the price would continue its journey upwards as long as USD is strong.
EUR/JPY: The fate
of this cross would continue to be determined largely by whatever happens to
the euro. The current weakness on the market is caused by the weakness in the euro itself, and things have already turned bearish, the trend that could be
sustained this week.
The material has been provided by InstaForex Company – www.instaforex.com