EUR/USD: The EUR/USD has now broken out of its recent
sideways phase. The breakout favored the bears as the price tested the support
line at 1.1100. The bears’ willingness to continue testing the support line is
perceived and the line may yield as the EUR/USD goes further south today.
bias on this pair is bullish, owing to the near-term strength in the USD.
There is now a Bullish Confirmation Pattern in the chart. The EMA 11 is above
the EMA 56 and the RSI period 14 is above the level of 50. The price has tested
the resistance level at 0.9750, and it may test it again, breaching it to the
GBP/USD: The cable has dived by 160 pips this week,
resting on the accumulation territory of 1.5250. There are now a lot of
activities around the accumulation territory, as bull and the bear
continue to struggle for supremacy, an ongoing volatility would be observed. The
accumulation territory at 1.5200 remains an easy target for bear.
USD/JPY: This market is also bearish vividly. Based on
the price action, it would be rational to seek short trades when the market
rallies a bit. As long as the rally does not hit the market above the supply
level of 121.50, this would be called a bearish market.
EUR/JPY: The EUR/JPY cross, which became bearish last week, has fallen by 250 pips this week. In line with our expectations, the price has gone below the supply zones at 134.50 and 134.00. With more selling pressure in the market, this cross could also test the demand zone of 133.00.
The material has been provided by InstaForex Company – www.instaforex.com