This currency trading instrument rallied last week, but the further rally was halted at the distribution territory around 1.5650. For a bullish bias to continue being valid, the distribution territory must be breached to the upside. Otherwise, there could be risk of a strong bearish correction this week.
Several weeks ago, this market began to rally from the demand level at 120.50. It rallied by over 350 pips, going slightly above the demand level at 124.00. With further buying pressure, the supply level at 124.50 would be breached this week.
This cross first consolidated last week, but it brokeput downwards on Thursday, trending lower and lower gradually. On Friday, the price closed below the supply zone at 134.50. Since, there is a strong Bearish Confirmation Pattern in the chart, it is assumed that the southward journey would continue, especially as long as EUR is weak.
Bears have not shown any signs of relenting this week, although there was no significant movement on Monday. The Bearish Confirmation Pattern is intact in the market, and the support line at 1.0800 could be violated. In case the support line is successfully breached, the next target would be the support line at 1.0750.
The USD/CHF pair still epresses willingness to go further north by moving upward by 40 pips on Monday. This is a slight continuation of the current dominant bullish bias, and the resistance level at 0.9650 is under siege now. In case the resistance level gets breached to the upside, the next target would be the resistance level at 0.9700.
Irrespective of recent consolidation, there is still a clean bullish bias on the cable. For the bullish bias to continue being valid, the distribution territory at 1.5650 must be breached to the upside: otherwise there could be a risk of a strong bearish correction this week.
This currency trading instrument has been trending strongly for the most part of this month. The price has closed above the demand level at 124.00, going towards the supply level at 124.50. Should that supply level be broken to the upside, the next target would be another supply level of 125.00
The fate of the EUR/JPY pair would continue to be determined by whatever happens to the euro. The euro is currently weak - hence the bearish outlook on the cross. The bearish outlook can only be reversed in case the euro becomes significantly strong.
This pair rallied by 150 pips at least yesterday, but the bearish bias is not over. What can render the bearish bias invalid is a condition in which the price goes above the resistance line at 1.1050. If the price fails to cross above that resistance line, a new lease of bearish movement might begin
The USD/CHF pair was corrected lower yesterday. Unless the support level at 0.9500 is breached to the downside, this would be seen as an opportunity to go long when things are on sale and in the context of an uptrend. In case the USD gains stamina, the pair may rally again.
