In spite of what has happened so far this week, like low volatility and slow movement, the USD/CHF pair remains in a bullish market. With further bullish journey, the price is expected to test the resistance level at 0.9850, after breaking the resistance level at 0.9800 to the upside.
This pair has been consolidating to the downside since Monday, though the bearish bias is clearly visible. The EMA 11 is below the EMA 56 and the RSI period 14 is staying below the level of 50. It is very much likely that the price would continue moving southwards when there is a break out of this consolidating market (in the context of a downtrend).
The USD/JPY pair has not performed any strong directional movement this week (and for most of September 2015). This is a sideways market; but there is a high probability that a strong breakout would happen today or next week, which would take the price above the supply level at 121.00 or below the demand level at 119.00.
Although the EUR/JPY cross currently looks choppy, the outlook for the market is bearish. This week, the demand zone at 133.50 has been tested and it could be tested again. In case the demand zone is breached to the downside, the next target would be the demand zone at 133.00. There is a Bearish Confirmation Pattern in the market.
The EUR/USD was volatile last week, being alternated with short-term bullish and bearish swings. The rally that took place on October 2, 2015, enabled the pair to test the resistance line at 1.1300. However, the price failed to close above the resistance line, since it eased a little. The price could weaken further today, enabling the support lines at 1.1150 and 1.1100 to be tested.
The USD/CHF pair performed a large pullback on Friday in the context of an uptrend. Unless the price goes below the support level at 0.9600, the pullback would proffer a wonderful opportunity to go long at a better price. The resistance level of 0.9800 could be tested this week, but a strong buying pressure is required for the resistance level at 0.9850 to be broken.
The Bearish Confirmation Pattern in this market is still a valid thing compared to the last bullish attempt. The bullish attempt could prove to be a false breakout, except the distribution territory at 1.5300 is overcome. A large movement is expected in the market this week, which would favor either bulls or bears
Owing to an ongoing struggle between bulls and bears, this currency trading instrument has become quite choppy because there is not a strong directional movement yet. This week, the price would either break the supply level at 121.00 to the upside or break the demand level at 118.00 to the downside. This condition must be fulfilled before the consolidation phase in the market is over.
There is also no large directional movement here; though the bias remains bearish. An upwards movement of 200 pips could lead to a "buy" signal. It is possible that the Yen would lose some strength this week, which would help the price to go further north. Otherwise, we would see a test of the demand zones at 133.50 and 133.00.
The EUR/USD pair remained volatile being alternated with a short-term bullish and bearish swings. In spite of high volatility, the price has entered a consolidation phase, which would hold until a significant movement to the upside or to the downside takes place. This is what we call a breakout.
