This pair is making attempts to go above the resistance line of 1.1200, which was briefly overcome last week before the price went below it. The EMAs 11 and 56 (plus the Williams' % Range period 20) in the 4-hour chart show that a buy signal is a valid in the market. Therefore, the aforementioned resistance line would be breached as the market goes further upwards.
Here, the price has moved far below the EMA 11, which in its turn is below the EMA 56. The Williams' % Range period 20 is perpetually in the oversold territory. The USD/CHF pair is now testing the support level of 0.9850, and it is likely to breach that support level to the downside today.
The bearish movement started on the cable on Thursday, February 4, 2016, has become a threat to the recent bullish bias in the market. Should the price go further downward by 200 pips, that would signal an end to the bullish bias and the beginning of the bearish bias, which might enable the price to reach the accumulation territory around 1.4200 and 1.4150 (this week or next).
The USD/JPY pair dropped by roughly 500 pips last week. It also dropped by over 200 pips on Monday from a high of the day. Bears are currently in control, and therefore long trades are not advisable until it is clear that the bearish movement is over. Right now, there is a possibility that the demand level of 115.00 would be easily breached to the downside.
This cross has also yielded to gravity, just like other JPY pairs, which are bearish in outlook now. The ongoing strength in EUR is unable to help this cross because the JPY has lots of stamina in it. Since there is a Bearish Confirmation Pattern in the market, it is logical to assume that the southwards movement started this week would continue.
The EUR/USD pair is in a strong trend. Since January 29, 2016, it has gone up by 500 pips. From the low hit on Monday, February 8, 2016, it has come up by 220 pips. The perceived weakness in the USD coupled with the ongoing strength in the EUR (as evident on EUR pairs) is responsible for the strong bearish trend. The resistance line at 1.1300 has already been tested and it will be tested again. It could even be breached to the upside.
The USD/CHF pair is in a strong trend. Since January 29, 2016, it has come down by 550 pips. From the high reached on Monday, February 8, 2016, it has lost 260 pips. The perceived weakness in the USD coupled with the ongoing strength in the CHF (as evident on CHF pairs) is responsible for the strong bearish trend. The support level at 0.9700 has already been tested and it will be tested again. It could even be breached to the downside.
The movement in the cable is currently erratic at best. The market is choppy; and though a directional movement is imminent, which would lead to a trend confirmation pattern. It is better to approach the market with some dexterity, because there are mixed signals in the market.
The USD/JPY pair has exceeded our targets for this week. The price is currently going below the supply levels of 116.00 and 115.50 threatening to slash through the demand levels of 114.00 and 113.50. The price is under the EMA 56 and the RSI period 14 is below the level of 50. Therefore, it is logical to assume that the bearish trend would continue.
