GBP/USD dropped 450 pips
last week, to test the low of 1.2796, before price consolidated in the last few
days of the week. The bias on 4-hour, daily and weekly charts is bearish, and
thus price should continue its decline. However, this week may be different,
for we could see a strong rally in the context of a downtrend. The expected
rally would not be strong enough to push price beyond the high of June 23,
2016.
EUR/USD: This pair moved
essentially sideways throughout last week, but the bias remains bearish. There
is a need for price to go above the resistance line at 1.1400, before it can be
said that bulls have begun to reign in this market. There could be some serious
bullish attempts this week, but they would not be able to push price beyond the
resistance line at 1.1400.
USD/CHF: This currency trading
instrument made a commendable effort to go upwards last week. Price first went
above the support level at 0.9800, and then tested the resistance level at 0.9850.
Bulls might also be able to target the resistance level at 0.9000. Nonetheless
there are two obstacles along the way, which is expected stamina in CHF in the
month, coupled with the possibility that USD could also lose strength this week
or next.
GBP/USD: GBP/USD dropped 450
pips last week, to test the low of 1.2796, before price consolidated in the
last few days of the week. The bias on 4-hour, daily and weekly charts is
bearish, and thus price should continue its decline. However, this week may be
different, for we could see a strong rally in the context of a downtrend. The
expected rally would not be strong enough to push price beyond the high of June
23, 2016.
USD/JPY: This pair went
downwards by at least, 250 pips last week. There is a Bearish Confirmation
Pattern in the market, and further southward movement could be witnessed this
week. The next targets for bears are located at the demand levels of 100.00,
99.50 and 99.00. The demand level at 100.00 would pose a challenge to bears;
but once it is breached to the downside, further bearish movement would be seen
as price goes below other demand levels beneath.
EUR/JPY: The EUR/JPY declined by
330 pips from Monday to Wednesday – only to move sideways on Thursday and
Friday. The bias is bearish; just as it is bearish on other JPY pairs. Any
rallies in this market ought to be ignored. They might even be taken as
opportunities to go short at better prices.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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