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Interesting things are happening in the markets, especially on JPY pairs. The northward outlook on these pairs has held out longer than what most thought. The USDJPY pair has broken the great supply zone of 100.00 to the upside (the last time the price was above that market zone was April 2009). The real surmise shows that a northward journey would continue to run as long as some think it would end. When most traders think the bias would continue indefinitely, then there would be a reversal. A southwards journey would likewise continue for as long as people hope it would end. Then when people think it would not end soonest, that is when a new bullish phase would begin.
EURUSD
Primary trend: Bearish
From the recent monthly peak of 1.3242, the price has gradually come down to the present location. Although the bulls struggled desperately to push up the price, they were eventually outmaneuvered by the wily bears. For example, the market has lost all its gains in the recent week. There is a new bearish indication on in the market and one would do well to seek short trades only.
USDCHF
Primary trend: Bullish
On the USDCHF, the weak bearish trend has been gotten rid of completely. There is a Bullish Confirmation Pattern on the chart – for the indicators now support a bullish outlook. Despite any possible correction that may take place in the next several days, it is advisable to seek only long trades here. Price correction ought not to go below the support level at 0.9400, while the price could eventually reach the resistance level at 0.9600.
GBPUSD
Primary trend: Bearish
As far as the reality on the chart is concerned, this pair is now in a bearish mode. Given the new lease of strength in the Greenback, the pair has been weakened. The only thing that can render this outlook invalid is a scenario in which the price fails to go below the accumulation territory of 1.5400. Should that price territory get broken to the downside, the next target would be 1.5300.
USDJPY
Primary trend: Bullish
The northward outlook on this pair has held out longer than what most thought. The USDJPY pair has broken the great supply zone of 100.00 to the upside (the last time the price was above that market zone was April 2009). This means a renewed strength in the pair, and the next targets would be the supply zones of 102.00 and 103.00 respectively. Any bearish correction along the way may not drag the price downwards below the demand zone of 100.00
EURJPY
Primary trend: Bullish
This cross trended very long in a sideways manner. Breaking out of the recent sideways phase, the pair is now caught in a serious buying pressure. Before this happened, there was constant indication that the breakout of the sideways phase would be in favor of the bulls, for the primary bullish trend is still valid. The price is above the demand level at 131.00 and could go on towards the supply level at 131.00.
This article is concluded with the quote below:
“I don’t live and die by every strategy signal that I get.” – Anthony Crudele
Attribution: Paxforex.com
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