The cable closed below the distribution territory at 1.5550 last week, generating a clean "sell" signal. With further bears' power, the accumulation territories around 1.5450 and 1.5400 would be tested. In case the price moves above the distribution territories at 1.5550 and 1.5600, the current "sell" signal would be invalidated.
What is happening on the USD/JPY pair signifies a serious battle between bulls and bears. Although the recent bullish bias in the market remains intact, it is wise to stay away from this pair until there is a clean directional bias in the market. This clean directional bias should be seen this week
This cross closed on a bullish note last week, moving towards the supply zone at 136.00. This has resulted in a clean bullish outlook, which should continue to hold out unless the yen gains a considerable amount of stamina. This is a situation that can halt further bullish movement on this market.
This cross closed on a bullish note last week, moving towards the supply zone at 136.00. This has resulted in a clean bullish outlook, which should continue to hold out unless the yen gains a considerable amount of stamina. This is a situation that can halt further bullish movement on this market.
Since last week, the EUR/USD pair has moved upward by at least 300 pips. This resulted in a vivid Bullish Confirmation Pattern in the market. It is possible that the price would keep on going northwards. The next targets to be reached are the resistance lines at 1.1150 and 1.1200.
Surprisingly, the bias on the USD/CHF pair is also bullish - just like the bias on EUR/USD. These pairs are supposed to go in opposite ways, but there are rare occasions like this one, in which both lines would be going in the same direction (like the current price action on both pairs). But things would go off balance soon and, the EUR/USD pair will go further upwards as the USD/CHF pair will plummet. The only thing that can end the current bullish outlook on USD/CHF is an event in which the CHF itself becomes very strong. This is expected before the end of this week.
The cable is also making some bullish effort, though things look dicey in the market. It would be OK to stay away from this market right now until there would be a confirmed directional bias in the market.
The price broke downwards from the consolidation phase it had recently experienced. It tested the demand level at 123.00. This esulted in a 'sell' signal for the price could go further south. In addition, the price is expected to go further downwards because the yen might be strengthening this week.
The EUR/JPY pair traded further upwards on Monday; thereby adding to the bullish outlook that was started last week. The supply zone at 137.00 has been tested, and in case it is broken to the upside, bulls would target another supply zone at 138.00.
This pair lost some of the gain made on Monday. However, the bullish bias is not yet over, until the support line at 1.0950 is crossed to the downside. In case the bullish attempt is resumed, the resistance line at 1.1100 would be tested again. It could possibly be breached to the upside.
