EUR/USD: The bullish attempts on the EUR/USD has continued, and the price is now trading above the support line at 1.2700, testing the resistance line at 1.2750. The resistance line could easily be breached to the upside as the price goes further upwards. The price action so far this week has rendered the recent bearish outlook useless. Therefore, short trades are no longer rational.
USD/CHF: This pair would continue to be weak as long as the EUR/USD is strong. Once it crosses the support level at 0.9450 to the downside, the market would form a Bearish Confirmation Pattern in the chart. The Williams’ % Range is extremely oversold, which means that the bearish trend may continue, following any short-term rallies in the market.
GBP/USD: The continued rally in the Cable has nearly invalidated the bearish outlook in the market. A movement above the distribution territory at 1.6200 would mean the end of the bearish outlook. In addition, some fundamental figures are expected today and they can have some impact on the markets.
USD/JPY: The bearish signal on the USD/JPY is still valid: the RSI period 14 is below the level 50 and the price itself is below the EMA 56. For the bearish movement to continue, the price needs to close below the demand level at 108.00.
EUR/JPY: The strength in the EUR/JPY cross has enabled this cross to rally in the context of a downtrend. The rally is significant enough to force the bears to stay aside – a movement above the supply level at 138.50 would result in a clean bullish signal.
