There is now a Bearish Confirmation Pattern in the market, which means the price could begin to trend further downwards. There is a potential bearish target at the support line of 1.0750, while the resistance line at 1.0950 is a formidable barrier for bulls
There is a clear bullish signal on the USD/CHF pair for the price has moved upward. The price moved above the EMA 11, which in its turn is above the EMA 56. The Williams' % Range period 20 is not too far from the overbought region. Since the important market level at 1.0100 is being successfully breached, it might be logical to assume that the price would continue moving northwards.
The cable has found a strong support around the accumulation territory of 1.4100. The price has been going upwards in the context of a downtrend. As long as the price is below the distribution territory of 1.4400, it will not be safe to open long positions here.
The USD/JPY pair trended downwards testing the demand level of 116.00 and bounced upwards later. From that demand level, the price has moved upwards by 200 pips, now around the supply area of 118.00. A further upward movement of another 200 pips is likely to result in a new bullish bias on the market.
The outlook for this market remains bearish, though there are mixed signals observed. It is better to stay away from this market until there is a directional signal. There may be a breakout today or next week, which would be influenced by the events affecting the euro.
There is already a Bearish Confirmation Pattern seen in the EUR/USD chart, albeit the price made a faint effort to rally on Monday. The market went upwards by a mere 40 pips, rising from the support line of 1.0800. The current bearish pattern would be logical as long as the price does not go above the resistance line of 1.0950 (which is an adamant barrier to the bulls). An outlook for the EUR (plus other EUR pairs) is bearish for this week, and thus, the price could eventually trade lower.
There is still a lot of trading activities around the level of 1.0150, which is an important level. There is a high possibility that the price would be trading above that level this week, in order to continue its bullish journey which was started last week. Today's outlook for the US dollar is bright and this might help the pair to move further northwards.
As long as the distribution territories of 1.4550 and 1.4600 are not breached to the upside, long trades will not be sensitive to the cable. The current shallow rally in the market could turn out to be a good opportunity to sell short. The price is likely to test the accumulation territories around 1.4150 and 1.4000, which were also tested last week.
This pair merely moved sideways yesterday, though a closer look at the chart shows that the price is likely to trend further upwards this week. This poses a threat to an extant bearish outlook, which will eventually be rendered invalid when the supply level at 119.00 is overcome. The outlook for USD is bright and therefore the USD/JPY pair might continue moving upwards.
The EUR/JPY pair consolidated on Monday. There are demand zones around 128.00 and 127.50. There are also supply zones of 129.00 and 130.00. The price would either break above the supply zones or break below the demand zones today or tomorrow, and this can result in a directional movement.
