EURUSD: As mentioned in the introduction, the EURUSD pair traded sideways at the beginning of this trading week, but has now experienced a big gap up. This means that the EURUSD pair will move strongly for the next several days. Normally, whatever happens today will determine the major bias for the next several days.
USDCHF: The USDCHF pair, which traded in a range earlier this week, has now experienced some gap down in the current bearish context. With this in consideration, it is expected that the price could go up (as the EURUSD pair comes down eventually). Why? The market gapped down into support levels in the context of a downtrend. So we would expect a rally, at least in the near term.
GBPUSD: The GBPUSD pair rallied on Monday (December 31, 2012) and gapped upwards today. Actually, there is a new bullish signal on the chart. But whatever happens today would be a precursor of the overall market bias for the next several days.
USDJPY: This is an uptrend: the market continued as such on Monday. Today, there has been gap up – gapping into the supply territory, beyond the price level at 87.00. We would not like to go short when the price gaps into a great supply territory in the context of an uptrend (that is a trap). The price is expected to fall.
EURJPY: This cross has been in a significant upwards move. It traded upwards as well at the beginning of this trading week. Right now, there has been a gap up in the context of an uptrend. The gap touched the supply zone at 116.00. The price is expected to fall sooner or later, and therefore no new long positions are recommended right now.
