EUR/USD: The EUR/USD pair opened this week with a gap-up, which warns of a strong movement this week. Opening gaps were also observed on other EUR pairs and JPY pairs, which are expected to trend strong this week. As for EUR/USD, the gap is supposed to be filled soon.
USD/CHF: The movement on USD/CHF this week would be determined by the movement of EUR/USD. The upwards movement in EUR/USD would cause USD/CHF to fall; while the downwards movement in EUR/USD would force USD/CHF to fall. A rise in USD/CHF is more likely this week.
GBP/USD: Following the sharp rise in the market last week, the Cable has been moving sideways till now. However, a rise in momentum is anticipated, which would most probably favor bulls. This means that the distribution territories at 1.2850, 1.2900, and 1.2950 would be tested this week.
USD/JPY: Following a gap-up the in the market, USD/JPY trended a bit downwards on Monday (There were also gaps on other JPY pairs, which signal serious movements this week). There has been an attempt to fill the gap on USD/JPY, which would be filled today or tomorrow. The movement is expected to go southwards.
EUR/JPY: The gap-up on this currency cross made a shallow attempt to fill the gap. There is essentially a bullish signal in the market – a kind of Bullish Confirmation Pattern – which could be rendered useless only when the current gap is filled as price trends further southwards. Any movement contrary to that would merely serve to emphasize the current bullishness in the market.
