currency trading instrument made a further bullish effort yesterday, leading to a
clearer bullish signal in the market. Price is currently above the support line
at 1.1300; going towards the resistance line at 1.1350, which was tested
yesterday and also last week, and would be tested again (and
get breached to the upside).
USD/CHF: The USD/CHF pair did not
make any significant movement on August 22, 2016. There is a Bearish
Confirmation Pattern on the chart, and a further plunge could happen
this week. However, a possible weakness in CHF, coupled with a possible
weakness in the EUR/USD, might trigger a significant rally in USD/CHF.
GBP/USD: This pair went upwards
100 pips on Monday, testing the distribution territory at 1.3150. That
distribution territory was also tested last week, and it would be breached to
the upside this week, because there is a Bullish Confirmation Pattern on the
chart. There is a need for at least, 300 pips movement to the upside this week,
before there can be any threat to the dominant bearish outlook.
USD/JPY: Since the middle of
last week till now, the USD/JPY pair has moved sideways. A further sideways movement
for more several trading days would eventually lead to a neutral bias in the
near-term. However, there is going to be a breakout this week or next, which
would most possibly favor bears.
EUR/JPY: The EUR/JPY cross consolidated throughout last week, which was something it also did in the previous week. This has caused the bias to become neutral. The neutral bias would come to an end this week or next, when a breakout occurs, which would most probably favor bears.
The material has been provided by InstaForex Company – www.instaforex.com