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For a few weeks, the EURJPY has been experiencing limited bullish energy. Since the overall bias is bearish, it looks sensible to seek ways to go short when the price rallies, at least, to make allowances for the huge upswings and downswings in the price, as it occasionally happens. The price has been moving sideways for some time, and it would soon experience a renewed momentum in favor of the extant bias.
What would then happen if there is a renewed momentum while the price stays in an equilibrium phase, going possibly downwards? The agreement between the bulls and the bears would eventually result in wonderment, then inaction, at times worry. The worry can then result in a mad rush, which would cause increased selling pressure, thus driving the price further south.
EURUSD
Dominant bias: Bearish
This pair has remained bearish since the beginning of this year, although certain bullish attempts in the market nearly rendered the bias invalid at some time. The price is currently in an equilibrium phase, but there would soon be a breakout in the favor of the sellers. The support line at 1.3550 stands a chance of being breached to the downside. This support line was tested last week, and thus could be tested again.
USDCHF
Dominant bias: Bullish
This pair has remained bullish since the beginning of this year, although certain bearish attempts in the market nearly rendered the bias invalid at some time. The price is currently in an equilibrium phase, but there would soon be a breakout in the favor of the buyers. The resistance level at 0.9100 stands a chance of being breached to the upside. This resistance level was tested several times this week and last week, and thus could be tested again.
GBPUSD
Dominant bias: Bearish
Slowly and steadily (sometimes with significant but short-term rallies) the Cable is moving downwards. There is a Bearish Confirmation Pattern in the chart, and the price could reach the accumulation territories at 1.6300 and 1.6250 within the next several days, especially in the face of the extant bearish bias. Meanwhile the distribution territories at 1.6400 and 1.6500 serve as major hurdles to possible bullish attempts.
USDJPY
Dominant bias: Bearish
The situation on this currency trading instrument is rather tricky, and would require some patience. For a few weeks, it is clear that the bulls are having limited power here; and at the same time, the price has not been able to go downwards protractedly. Effective barriers to the buyers’ interest exist at the supply levels of 105.00 and 105.50. We are watching the demand levels at 103.00, which should be reached when the market plunges further.
EURJPY
Dominant bias: Bearish
For a few weeks, the EURJPY has been experiencing limited bullish energy. Since the overall bias is bearish, it looks sensible to seek ways to go short when the price rallies, at least, to make allowances for the huge upswings and downswings in the price, as it occasionally happens. The price has been moving sideways for some time, and it would soon experience a renewed momentum in favor of the extant bias.
This forecast is concluded with the quote below:
“If you know how to read price on a chart, you will understand how to recognize the true footprints of the major market players, mainly the institutions.” – Sam Evans
Eye-opening trading lessons: http://www.harriman-house.com/experttraders
Source: Tallinex.com
