EURUSD: This pair has come into the area of stabilization after it touched the resistance line of 1.3800 for several times and failed to overcome it. What we are witnessing now is a temporary southward reversal in a context of an uptrend. The price can still go up.
USDCHF: USDCHF has come into the area of stabilization after it challenged the resistance level of 0.8900 for several times and failed to overcome it. This means that resistance level is a good check on the bulls’ effort. What we are witnessing now is a temporary northward reversal in a context of a downtrend. The price can still go further downwards.
GBPUSD: After testing the distribution territory of 1.6450 for several times, the price has gone down by more than 110 pips. This is a formidable threat to the extant bullish bias – which would be rendered invalid when the price goes below the accumulation territory of 1.6300. Then the EMA 11 would have crossed the EMA 56 to the downside.
USDJPY: In the past weeks, the USDJPY has developed a pattern that is easily predictable by both trend traders and short-term mean reversion traders. Short-term mean reversion traders would have been making good gains in the middle of every week; whereas trend traders would have made several hundreds of pips in the past several weeks. Since the beginning of November 2013, the price has gone upwards by roughly 600 pips. The price is now nosing towards the supply level of 104.00 – a really new high.
EURJPY: This cross has moved upwards by over 140 pips this week. Trend traders that use wide stops would have benefitted (as well as counter trend traders who went for quick bucks when the price retraced in the middle of this week). Nevertheless, the trend is upward.
