pair is still in a weak market, but there is a good possibility that the pair may
rally this week. This may happen as a result of the EUR becoming strong versus
some other popular currencies, including, of course, the USD. This may happen
this week or next week, and therefore we are looking for a rally here.
currency trading instrument closed at 0.9660 (on Friday, November 7, 2014). The
price closed lower in the context of a downtrend. Some may see the bearish
correction as another opportunity to go long, provided that the price would not
go below the resistance level at 0.9600. It is a level where long trades may
no longer be sensible.
GBP/USD: The Cable dropped by 200 pips last week,
testing the accumulation territory at 1.5800 before bouncing upwards beyond the
accumulation territory at 1.5850. For the bearish trend to continue, the
accumulation territory at 1.5800 would be tested again; otherwise the price may
go above the distribution territory at 1.5950.
USD/JPY pair tested the supply level at 115.50 several times, but it was unable to
break it to the upside. There is an existing bearish pullback in the market,
which could be challenged at the demand level of 113.50. Any movement below
that demand level may put the bullish outlook in a precarious situation.
EUR/JPY: This market moved sideways in the last few
days of the last trading week, on a consolidation note. The market is
consolidating in the context of an uptrend. Any movement above the supply zone
at 143.50 would signal the renewal of the bullish trend, but any movement below
the demand zone at 141.50 would put the uptrend in jeopardy.
The material has been provided by InstaForex Company – www.instaforex.com