True to what has been analyzed, most currency instruments were expected to continue in the direction of the new overall trend, except in a few circumstances. After some protracted consolidations, those pairs and crosses have broken out in the expected directions.
EURUSD: This has been a bullish week for this pair. It has continued to move up above the EMA 21 as the Stochastic heads towards the overbought level. The resistance level at 1.2705 has already been tested and price could continue higher if it closes above that level.
USDCHF: Contrary to what would be normally expected as a negative correlation movement, this market has continued to be rangebound, rather than give a clear direction. One will do well to stay out of it for now.
GBPUSD: In spite of bearish corrections and pulls, the Cable has continued to go up. It has moved up by over 100 pips this week. The price is also above the EMA 21 as the Williams’ % Range is around the overbought level.
EURJPY: Based on what has been said, the bullish breakout that has started in the present context of an uptrend is expected to continue. Albeit there could be some correction to the downside before the upward journey is resumed.
Last week, the events on the markets were not favorable to the Greenback. The Greenback was weakened against most other currencies while they gained strength against it.
EURUSD: The EURUSD ended up rising by over 250 pips last week. The price is now above the level at 1.2800 and is expected to continue.
USDCHF: After some decisive battle between bulls and bears, this pair fell by over 110 pips last week. The price is expected to reach the level at 0.9350 this week.
GBPUSD: The Cable rose by over 160 pips last week, closing at 1.6008. A price level at 1.6100 is expected to be reached this week.
EURJPY: The EURJPY went up by over 180 pips last week, as it closed at 100.28. This week, if the present outlook continues to be valid, the price may reach the level at 101.00
USDJPY: Based on the market fundamentals, this pair, which traded in some tight range, rose and fell last week. It touched the resistance level at 79.00, fell by almost 100 pips and nearly reached the support level at 78.00. In correlation with other JPY pairs, the USDJPY is expected to rise this week.
Today, the currency markets are hovering around major supply and demand zones, as buyers and sellers continue their normal activities. Most pairs and crosses have tended to continue in the directions they saw earlier this week
EURUSD: This pair has been experiencing some difficulty in trending more upwards. The price is still above the EMA 21 as the Stochastic is trying to head upwards: which means that the price can break out to the upside.
USDCHF: As the USDCHF range-trades, it also finds it not easy to plunge further downwards. The price is below the EMA 21 as the Stochastic is also trying to head up. The price would possibly continue to go lower.
GBPUSD: This market has continued to showcase its northward bias as the price remains far above the EMA 21. The Williams’ % Range is in the overbought region; which may cause some pullback before the price continues its northward journey.
EURJPY: Since the EMA 11 still stays above the EMA 56, it is possible for the price to continue going up. In spite of the present pullback in the price, the Williams’ % Range in the oversold territory may allow bulls to enter at a cheaper price.
USDJPY: This pair has continued its weakness as the price has broken down, testing the support level at 78.00. The EMA 11 is below the EMA 56, showing a downward bias. The next target in the price may be 77.50.
Please watch out for my coming articles with these titles: ‘Making Money out of Losses – A Blessing in Disguise,’ ‘Achieve a Better Hit Rate with Gap Trading (Using the Logic Yourself),’ ‘Play the Markets Victoriously with Nano-cent Accounts,’ ‘Why It’s Difficult to Do the Right Things in the Markets,’ ‘How to Identify a Sideways Market – Be Safe!’ ‘A Negative Expectancy System – Pushing Against the Wind?’ ‘Trading Signals,’ ‘An Intraday Moves Catcher – A Wealth Generating System,’ ‘Unlock the Power of Everlasting Triumph in the Markets (Parts 1 - 12),’ ‘How to Handle Uncertainties in the Markets,’ ‘The Issue of Stops (Come Back! Oh Come Back!),’ ‘A Hedge Funds Strategy,’ ‘My Hedge Funds Strategy Update,’ ‘Experiment with Different Exit Tactics,’ ‘Mastering the Market Equilibrium Zones – A Time-sensitive Method,’ ‘How I Apply Risk Management – Part 3,’ ‘A Simple Positive Expectancy System – Trading Effortlessly,’ ‘Testimonies from My Subscribers,’ ‘Resist the Lure of High Risk – Part 4’ ‘Worst-case Scenarios – Facts Are Sacred,’ ‘Effective Swing Trading in Forex,’ ‘Gap Trading Revisited,’ ‘3 Recent Gap Trades,’ ‘Developing the Right Attitude towards Losses - Part 4 (Losses Aren’t Abnormal),’ ‘The True Holy Grail – The Long Sought for,’ ‘Forex Trading Vocabulary,’ ‘ Clarifying Some Issues – Part 6,’ ‘Navigating Turbulent Markets – A Double Timeframe Analysis,’ ‘Before You Open that Trade,’ ‘Cogent Trading Biases,’ ‘Overview of My Signals Strategies - Can You Become a Super Trader?,’ ‘Optimization of the USDCAD Hedging Strategy - Bringing the USDCAD to Subjection,’ ‘Uncertainty Has Become My Ally – An Interview with a Dogged Market Speculator,’ ‘The Cost of Discipline,’ ‘2 Examples of the USDCAD Hedging Trades,’ ‘Monthly Market Review,’ ‘You Are a Blessing to the World of Trading,’ ‘Annual Trading Results (2011) – I Was Perfecting My Trading Skill,’ ‘2012 – Another Year of Victory in the Markets,’ ‘Monthly Trading Report (December 2011),’ etc..............
Yesterday saw determined continuations in the current market biases. These biases are expected to continue further today, as buying and selling pressures hold out in their respective directions. This still holds true, though prices do not travel in straight lines.
EURUSD: This is a bull market. The price is still far above the EMA 21, though the Stochastic is now in the overbought territory. The next price target would be 1.2950.
USDCHF: When the EURUSD goes up, it will be difficult for USDCHF to do the same; hence the current downtrend. The support level at 0.9350 has been tested, and the price could breach it if the current market bias continues further.
GBPUSD: This is also an uptrend. The Cable has continued its slow and steady journey to the upside. The resistance level at 1.6000 has already been breached, while the price targets the resistance at 1.6150
EURJPY: Looking at the chart that accompanies this analysis on the EURJPY, we would see that everything points northwards. The resistance level at 100.50 has been disrespected as the price sticks its neck further.
USDJPY: Unlike most other JPY pairs, the USDJPY has continued to show vivid lack of strength. The support level at 77.50 is struggling to halt further downward trend. If it holds its ground, the price would rise.
The present currency markets biases are still valid, though some instruments are showing signs of retracement. When the markets break out of the current equilibrium zones, pairs and crosses are expected to continue in their directions.
EURUSD: The price is presently above the support level at 1.2900. The next resistance level is 1.2950, and if this is broken, the price would target 1.3000.
USDCHF: In this market, further bearish move was rejected at the accumulation territory situated at 0.9350. The price is trying to rally temporarily to the resistance level at 0.9400, but this could be what it is called - temporary.
GBPUSD: The price on this market has already been caught in an equilibrium zone as the Cable tests the support level at 1.6100. If the support level proves valid, the price would test the resistance level at 1.6150.
EURJPY: The resistance level at 100.50 has been futilely tested by the price, as the Williams’ % Range is heading down from the oversold region. The psychological support level at 100.00 would allow the bulls to enter long at that level.
USDJPY: This is a bear market: the price is now threatening to go below 77.50. If this bearish propensity continues, the next target would be a demand zone at 77.00.