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There have been interesting developments in the markets as currency trading instruments experience significant reversals. For example, the EURJPY was able to break out in the direction of the bears, after some protracted consolidation phase. The price went below the supply zone of 140.00, and it is expected to continue going down further.
EURUSD
Dominant bias: Bullish
In an effort to become positively correlated with the GBPUSD, this pair has gone seriously bullish. From the support area of 1.3550, the price shot upwards by over 150 pips. Soon, the price would be trading above the resistance line at 1.3700 (which is currently being challenged). The ultimate target for the week is at the resistance line of 1.3800. Meanwhile, the support line at 1.3600 should act as a hurdle to the bears’ threats.
USDCHF
Dominant bias: Bearish
There is now a Bearish Confirmation Pattern on this pair, as a result of the sudden weakness in the USD that started recently. The indicators on the chart show this, plus the fact that the price has tested the support level of 0.8900 before bouncing upwards. The upwards bounce should be something temporary, because the price is going to test that support level again and again; until it finally breaks it to the downside. The next target is at the support level at 0.8850.
GBPUSD
Dominant bias: Bullish
The Cable moved upwards recently by about 250 pips, topped at the distribution territory of 1.6650, before the price nosedived. The price is now trading below the distribution territory of 1.6500, although the bullish bias is still valid in the market. There are mixed signals on the chart in that the current bearish threats are formidable; but as long as the price stays above the 1.6400, the bullish bias is a valid thing.
USDJPY
Dominant bias: Bearish
Before the present bearish reversal in this market, it was going upwards in a limited manner. Now the price has plummeted seriously, testing the demand level at 102.00. That demand level would definitely be tested again, especially in the face of the extant selling pressure in the market. Once the demand level is again tested and broken to the downside, the next target in the market would be the demand level at 101.00.
EURJPY
Dominant bias: Bearish
There have been interesting developments in the markets as currency trading instruments experience significant reversals. For example, the EURJPY was able to break out in the direction of the bears, after some protracted consolidation phase. The price went below the supply zone of 140.00, and it is expected to continue going down further. The supply zone at 142.00 would act as a barrier to any bullish possibility. It is a normal thing to be caught by sudden fundamentals. Therefore, one would need to capitalize on the impact caused by the fundamental, no matter the direction of the price.
This forecast is concluded with the quote below:
“There’s only one way to make money trading, and that is testing, testing, testing… Take a trading strategy or a trading idea, and test it rigorously. And sometimes you’ll be surprised by the outcome…” – Markus Heitkoetter
Source: Tallinex.com
Eye-opening trading lessons: http://www.harriman-house.com/experttraders
