The Bearish Confirmation Pattern on the GBP/USD pair is very strong, and it can hold out, despite the current shallow rally in the market. This kind of rally should be seen as another opportunity to go short while the outlook on the market remains bearish. A further bearish movement is expected soon (most probably next week).
The USD/JPY pair remains steady � consolidating to the downside in the context of a downtrend. The price is now below the supply level of 121.00, targeting the demand level of 120.50. Since weak trading activity is expected today, the price would not go downwards significantly.
This cross went upwards on Monday and Tuesday, but came down on Wednesday, reinforcing the bearish pressure in the market. The demand zone of 131.50 has been tried and it can be retried, in spite of the upwards bounce that is currently happening (a bullish candle).
Last week, this pair closed at 1.0952 on a slight bullish note. There may not be serious momentum in the market this week, owing to a "poor" trading activity, but we could see surprising movements in some EUR pairs (like EURNZD, EURAUD and EURCAD). As for the EUR/USD pair, there is a likelihood that the resistance lines at 1.0950 and 1.0000 would be reached within the next several trading days.
This market merely moved sideways last week, with no significant journey to the upside or to the downside. There could be some movements in the market this week, but nothing extraordinary is expected. However, it is very likely that momentum would return to the market in the first week of January 2016.
What has happened so far on the cable is what can be called a rally in the context of an uptrend. The price has been going gradually upwards since last week, while the outlook remains bearish. Only a movement above the distribution territory at 1.5050 would render the bearish outlook invalid; otherwise, the current rally would be logically taken for another short-selling opportunity.
The USD/JPY pair trended nicely downwards last week. The pair moved down by 110 pips is now trading below the supply level of 120.50, and going towards the demand level at 120.00. There is a very strong Bearish Confirmation Pattern in the chart; plus the price is likely to go further south when momentum returns to the market.
The upwards bounce we witnessed last week proved to be an opportunity to go short. The price moved down after that testing the demand zone of 131.50, which might be breached to the downside soon.
This pair was quiet on Monday, and there may not be a serious movement in the market this week owing to poor trading activity, but we could see surprising movements in some EUR pairs (like EURNZD, EURAUD and EURCAD). As for the EUR/USD pair, there is a likelihood that the resistance lines at 1.0950 and 1.0000 would be reached within the next several trading days.
This market merely moved sideways on Monday, with no significant journey to the upside or to the downside. There could be some movement in the market this week, but nothing extraordinary is expected. However, momentum is likely to return to the market during the first week of January 2016.
