market consolidated last week, and trended upwards on Friday. But the upwards
attempt has not been strong enough to invalidate the overall bearish bias. This
may then be seen as an opportunity to seek short trades, because the outlook on EUR/USD and most EUR pairs is bearish this week. The only thing that can
reverse this bearish situation in the market is a large pullback in the
USD/CHF pair.


USD/CHF: After a series of
hesitation, the USD/CHF pair was able to go above the decisive resistance level at
0.9900. However, bears came in to push price below that resistance level. The
bias on the market remains bullish and a further upwards movement is expected,
though it is unlikely that price would be able to go above the resistance level
at 1.0000, which is an important one. CHF itself may exert some form of
bullishness before the end of November 2016, though USD is strong in its own
right. Serious buying pressure would be needed for the resistance level at
1.0000 to be breached to the upside; otherwise, a large pullback may occur.


GBP/USD: The Cable has been
consolidating for about two weeks. Such developments have resulted in a neutral bias
in the short term. The long-term outlook on the market remains bearish and when
momentum rises, it would most likely favor bears. Strong volatility would
be witnessed on the GBP pairs this week, and some of them would be weaker in most


USD/JPY: This currency trading
instrument moved upwards by 160 pips last week, to test the supply level at
105.50. The outlook on JPY pairs is bullish for this week, and the current
shallow pullback is seen as another opportunity to buy long when things are on
sale and in the context of an uptrend. The supply levels at 105.50, 106.00, and
106.50 may be tested this week.


EUR/JPY pair went upwards by 230 pips last week, closing above the demand zone at
115.00 on Friday. There is now a Bullish Confirmation Pattern on the 4-hour
chart, and the last candlestick on Friday reveals that bulls are still willing
to push price further upwards this week. Therefore, the supply levels at
115.50, 116.00, and 116.50 would be targeted this week. In spite of the weakness
in EUR, the market would continue going upwards.


The material has been provided by InstaForex Company –

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