This cross is highly volatile with serious struggles between bulls and bears. The determinant of this week's movement on the cross is the situation on the EUR and the JPY - a stronger JPY would cause the cross to tumble and a stronger EUR could cause it to skyrocket. The outlook on JPY pairs remains bearish, and therefore, there is a strong probability that the cross would trend downwards.
The EUR/USD has continued its bearish journey started on Friday. From the resistance line at 1.1450, the price has gone 250 pips down. The price is now below the resistance line at 1.1200, going towards the support line at 1.1150. This bearish movement resulted in a Bearish Confirmation Pattern in the market.
This pair has made another faint attempt to continue the bullish journey it started on Friday. From the support level at 0.9550, the price has gone upwards by, at least, 170 pips. This upwards movement is not yet strong enough to lead to any serious outlook, unless the price goes above the resistance level at 0.9800. Only a serious plunge in the EUR/USD and a great stamina in the USD could make the USD/CHF pair go above the resistance level of 0.9800. Until that happens, one might consider staying away from this market.
Since testing the distribution territory of 1.5650, the cable has been coming down gradually, though the bullish outlook is still valid. Any movement below the accumulation territory around 1.5400 could lead to a fresh bearish bias. Until that happens, the bias is bullish.
In this market, the current equilibrium phase is not over yet. This week, the price might go above the supply level at 121.50 or below the demand level at 119.00. Until that happens, this would remain an equilibrium market, with the price swinging between the aforementioned support and resistance levels.
This cross has also continued journeying southwards started on Friday. There is a confirmed bearish signal in the market now, which could continue to be valid unless the EUR gains loads of strength and the yen eases a little.
The EUR/USD has continued the bearish journey it started on Friday. From the resistance line at 1.1450, the price has gone down by 320 pips. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. The outlook on the market is bearish and further southward journey is expected.
Under selling pressure from the EUR/USD pair, the USD/CHF pair has been going upwards gradually. The resistance level at 0.9750 is under siege now. In case continuous selling pressure take place, the USD/CHF pair could move further upwards. There is a strong barrier to the ongoing bullish effort, which is the resistance level at 0.9800.
Since testing the distribution territory at 1.5650, the cable has come 300 pips down. A current faint bullish attempt pales into insignificance when compared to the overall direction of the price. The accumulation territory of 1.5350 has already been tested and it would be tested again. It could even be breached to the downside.
The current equilibrium phase is not yet over in this market. This week, the price might go above the supply level at 121.50 or below the demand level at 119.00. Until that happens, this would remain an equilibrium market, with the price swinging between the aforementioned support and resistance levels
