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There have been sharp reversals in the markets, as the EUR, GBP and other currencies got weakened. All JPY pairs have rallied: there are confirmed new biases in the markets. As some instruments plummet further, more bearish pressure would be experienced and positions are smoothed as people show the white feather when they are risk-averse. As you probably know, exits are also a good part of any trading strategy, not only entries.
EURUSD
Primary trend: Bearish
The EURUSD has been weakened recently, giving up most of the gains it accumulated in the last few weeks. There is now a Bearish Confirmation Pattern on the chart, and short trades could thus be sought. The price might trend further downwards towards the support line of 1.3100 and 1.3000 respectively. Any rallies are supposed to be short-term, not going upwards more than the resistance line at 1.3350.
USDCHF
Primary trend: Bearish
Right now, the indicators on the chart do not agree on a particular bias. The oscillators support a bullish outlook, whereas the momentum indicators support bearish outlook. There are mixed signals in this market, and so one would need to wait for a further confirmation before one takes a position. Should the EURUSD get weakened further, this pair would be forced to trend upwards in a significant manner.
GBPUSD
Primary trend: Bearish
The optimism surrounding the Cable has already disappeared, following some Bearish Confirmation Pattern on the chart. One should seek short trades only (even any expected rallies should not take the price above the distribution territory of 1.5650). The short-term rallies are thus seen as opportunities to go short at higher prices in a context of a downtrend. Meanwhile, the price may reach the accumulation territory of 1.5300.
USDJPY
Primary trend: Bullish
There is a conspicuous ‘buy’ signal on the USDJPY. There is a Bullish Confirmation Pattern on the chart, which is a clean bias, as supported by the indicators. The price thus could be going further upwards. Any pullbacks in the price may not take the price lower than the demand level of 96.00, though it is probable that the price could go upwards towards the supply level of 100.00 within the next several trading days.
EURJPY
Primary trend: Bullish
There has already been an indication to go long on this market. Should this bullish indication continue, the price would be trading above the important market zone of 130.00, going towards the supply zone of 131.00. There could be some tests of the nearest demand zones, say 128.00 and 127.00, but the price ought not to go below the aforementioned demand zones, for the current bias not to be in jeopardy.
This article is concluded with the quote below:
“The mark of a sound strategy is that it can work in entirely different eras such as the 1920s and 1930s.” – Dr. Chris Kacher
Source: Paxforex.com
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