EUR/USD: The EUR/USD, which is still in a vivid downtrend, dropped downwards by nearly 200 pips last week. The support line at 1.3000 has already been tested and is now vulnerable to bears’ assault. Eventually, the support level would be broken this week, and the price would go towards the support level at 1.2900.
USD/CHF: This pair trades in a direct opposite manner to the EUR/USD, and thus remains a bull market. The price moved by roughly 150 pips last week – something that is expected to continue this week. The price is currently trading above the market level at 0.9400. The next target would be the resistance level at 0.9500.
GBP/USD: On the Cable, sell and sell short. It is not advisable to look for long trades on this instrument right now. Like it was mentioned in the last analysis, any rally on the instrument is a great opportunity to go short. This is exactly the strategy that will be used for this week.
USD/JPY: This pair has really tried to recover the exponential loss it sustained at the beginning of the last week. Given the current situation in the chart, the optimal thing to do is to go long on the market, but one would need to wait and see what would happen on Monday before one can assume any direction for the week.
EUR/JPY: Like the USD/JPY and other JPY pairs, the EUR/JPY tried to recover some if its exponential loss at the beginning of the last trading week. The current price action seriously violates the recent bearish signal, but it would be seen whether the price would be able to close above the EMA 56 and trade upwards. If not, this would prove to be a short-term rally in the context of a downtrend.
