Irrespective of the recent consolidation, there is still a clean bullish bias on the Cable. For the bullish bias to continue being valid, the distribution territory at 1.5650 must be breached to the upside. Otherwise, there could be a risk of a strong bearish correction this week.
The USD/JPY pair went below the supply level at 124.50 yesterday. This is seen as a bearish correction in the context of an uptrend, and it may offer another opportunity to go long at a better price. However, this assumption will be valid only as long as the price is above the demand level at 123.00 because a movement below that demand level would signal a bearish bias.
This currency trading instrument went upwards from the demand zone at 134.50 reaching the supply zone at 135.50. Unless the price trends downwards again, further rally may render the bearish outlook invalid. The greatest determinant of the movement itself is the euro.
The currency pair faced resistance at the level of 1.0950. There is a stromg possibility that the price could fall lower reaching the support line at 1.0850. An ultimate target is seen at the support line of 1.0800, and unless USD loses its strength in, it would be attained. Moreover, fundamental data is due today and it can have a significant impact on the market.
As we had expected, the USD/CHF failed to resume its northward journey. The price is above the support level at 0.9600 now, and it could continue going further north, reaching the resistance level at 0.9650.
the cable is moving in a clean bullish bias despite the current market consolidation. Bulls are still making attempts to drive the price further upwards. A break above the distribution territory at 1.5650 would result in a stronger Bullish Confirmation Pattern in the chart; since the distribution territory has been a major impediment to bulls' interests (the price was unable to break it upwards last week).
yesterday's drop in the price proved to be temporary. It was a wonderful opportunity to buy long in this market. The supply level at 124.50 might thus be reached in no time
On the 4-hour chart, the EMA 11 is below the EMA 56, but the RSI period 14 is above the level of 50. It is therefore better to stay away from this market until there is a clear signal
EUR/USD has been rising upwards over the last week and consolidating in the end of the week. A movement above the resistance lines at 1.1050 and 1.1100 would result in a Bullish Confirmation Pattern on the market. Whereas a movement below the support lines at 1.0900 and 1.0850 would simply reinforce the recent bearish bias in the market. Right now, long trades are not recommended here until there is a clean indication that bears are leading.
Surprisingly, the USD/CHF pair did not come down as deep as the EUR/USD pair has gone upwards. Nevertheless, the inability of USD/CHF to go above the resistance level of 0.9650 means that bulls should approach this market with caution. In case the price fails to do a meaningful rally this week, there might be a further bearish correction
