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In the previous week, the dominant biases in the markets have proven to be valid (even till now). It can be seen that the consolidations and reversals that happened on major pairs and crosses were short-term in nature; as the respective instruments have continued in the direction of the major biases. The USD and the JPY are strong, whereas the GBP and the EUR are weak.
EURUSD
Primary trend: Bearish
This is a bear market, and it is supposed to continue being so. The pair may continue to trend lower, possibly towards the support lines of 1.2700 and 1.2650. However, this may not happen without some occasional rallies along the way, which are not expected to take the price above the resistance line at 1.3000. For the several trading days to come, the aforementioned resistance line would be a great barrier to any bull’s interests.
USDCHF
Primary trend: Bullish
Being able to shrug off bearish threats on it, the USDCHF has been able to continue going northwards. The stamina of the USD is a reality, and as such the scenario in this market is no surprise. Having been able to overcome adamant resistance levels, the price could go on towards the resistance levels of 0.9650 and 0.9750 respectively. Would the USD be able to reach parity with the CHF? Time will tell.
GBPUSD
Primary trend: Bearish
For now, there is no optimism around the Cable, for it is in a vivid downtrend. On July 3, 2013, there was a significant rally in the price, which eventually proved to be short-term in nature. It simply happened that the rally was a good sell-shorting opportunity in the context of the present downtrend. The Cable has plummeted by hundreds of pips, and it could reach the accumulation territory of 1.4000, should this weakness continue.
USDJPY
Primary trend: Bullish
Recently, this pair was able to breach the great psychological level at 100.00 to the upside. The USD is now more valuable than the JPY. The JPY is strong and the USD is strong. It now appears that the USD is stronger than the JPY, for the bias on the USDJPY is towards the north. There is still a Bullish Confirmation Pattern in the market, and therefore, is probable that the price could go upwards towards the supply level 101.00.
EURJPY
Primary trend: Bullish
The EURJPY does not look buoyant at the present, given the lack of stamina in the EUR itself. Unless the weakness in the EUR is extremely significant, the cross would have to respect the direction of the other JPY pairs (as in the normal positive correlation). At the present, it is advisable for one to stay away from this market until there is a clear signal. This is because there are mixed signals on the chart.
Source: Paxforex.com
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