It was very interesting that the USD/CHF pair dropped by over 350 pips on Thursday. This week alone, the price has dropped by 400 pips leading to an overnight bearish outlook in the market. Since the price has dropped below the great psychological level of 1.0000, a further bearish movement is possible.
Having tested the accumulation territory of 1.4900, this market went upwards by 250 pips, testing the distribution territory of 1.5150. One thing: the bearish losses that were seen this week so far have already been gained. On the other hand, the upward bounce, which happened in a weak positive correlation with the EUR/USD pair, has not been strong enough to override the extant bearish bias. The price would need to move further upwards by 200 pips to override the bearish bias.
Sudden weakness in the USD has made this currency trading instrument gone lower across the EMA 56 to the downside. The RSI period 14 is now below the level of 50, which is an indication of early bearish bias in the market. The bearish bias might continue
It had already been said that this cross would not go upwards seriously unless the EUR gained serious stamina, or the JPY lost stamina. The price moved upwards by 450 pips in a single day after testing the demand zone of 130.00. The price has already moved above the demand level of 134.00, and further bullish movement is possible.
There is a Bullish Confirmation Pattern in the market now, which has overturned the recent bearish bias abruptly. This market should trend further upwards this week; otherwise what happened last week would turn out to be a false breakout. More fundamental figures are expected this week and they could have impact on the markets.
This pair dropped by 400 pips last week, turning bearish abruptly. There is now a clear Bearish Confirmation Pattern in the chart, because the price has already gone below the great psychological resistance level of 1.0000. It might require some difficulty for the USD/CHF pair to go above the great resistance level again, owing to its negative correlation in the EUR/USD pair, and the fact that CHF itself might rally in the middle of December.
The GBP/USD pair rose from the accumulation territory at 1.4900, to test the distribution territory of 1.5150 (a movement of 250 pips). However, the price needs to move further upwards by 150 pips before the extant bearish outlook can be rendered invalid. Really, the outlook for GBP pairs remains gloomy.
Despite strong movements of major pairs last week, this currency trading instrument merely moved sideways. There were short-term upswings and downswings in the market, which made the market condition great for scalpers and intraday traders. The bias is neutral, and it may continue as such until there is a movement of at least 200 pips upwards or downwards.
Last week, the EUR/JPY pair rose from the demand zone of 130.00 testing the supply zone of 134.50. This was a movement of 450 pips, which was an exponential movement brought about by the great stamina in the EUR. The price is currently consolidating, but we might witness a further bullish breakout in the market, since the outlook for JPY pairs is bright for December 2015.
