After testing the resistance line at 1.1050, this currency trading instrument got corrected to the downside. Nevertheless, this could be seen as a mere correction in the context of an uptrend, because the price should go below the support line of 1.0800 before it could be assumed that the bullish bias is over.
The USD/CHF pair faces two challenges: the euro is strong and the Swiss franc could potentially rally before the Christmas Eve. Nonetheless, the USD might rally against other major currencies. Any rallies that are seen in this market should be taken as short-selling signals, because the bearish outlook would be in place until the great resistance level of 1.0000 is overcome.
This week, the cable fell by 200 pips, leading to a clear Bearish Confirmation Pattern in the market. The price has moved below the distribution territory of 1.5000, going towards the accumulation territory of 1.4950.
After testing the demand level of 120.50, the USD/JPY pair moved upwards by 170 pips this week. This is happening in the context of a downtrend, though the bias would turn bullish once the price goes above the supply level of 122.50 (for the bearish trend is now threatened). Since the outlook on JPY pairs is bullish for the month of December, this is very likely to occur.
This pair has already generated a "sell" signal making long trades illogical. The price was unable to go above the resistance line at 1.1050, and since then the price has gone down by 220 pips. It is better to seek short trades here, for further southward movement is anticipated
The USD/CHF pair has been making some commendable bullish attempts. The price is now above the support level of 0.9950 in the context of a downtrend. However, it must be mentioned that any movement above the resistance level of 1.0050 will result in a Bullish Confirmation Pattern in the market. By then, the EMA 11 will go above the EMA 56, while the Williams' % Range period 20 is likely to remain in the overbought territory (which has already been attained).
The bearish indication on the cable is now conspicuous. This week, the price has fallen by 300 pips, forming a clean Bearish Confirmation Pattern in the market. The price has moved below the distribution territory of 1.4900 going towards the accumulation territory of 1.4850. The market has become really weak and this is expected to continue for some time
Having gone upwards by 230 pips this week (from the demand level at 120.50), the USD/JPY pair has gone bullish. The price is now above the demand level of 122.50, going towards the supply level of 123.00. This has become an easy target for bulls.
A closer look at the 4-hour chart reveals that this cross is in a bullish mode, though the price has moved sideways so far the week. The sideways movement cannot last forever. It is possible for the price to journey further upwards from here, as bulls target the supply zones of 134.00 and 134.50.
The EUR/USD went slightly higher on Monday. The price is above the support line at 1.0900, nosing towards the resistance level at 1.0950. The price would either go above the aforementioned resistance line or below the aforementioned support line, based on what happens today.
