Daily analysis of major pairs for June 6, 2017
On Monday, the USD/JPY moved sideways in the context of a downtrend. Further sideways movement is possible, though when a breakout does occur, it would most probably be in favor of bears. This week, the demand levels at 110.00, 109.50 and 109.00 could be tested.
EUR/USD: The EUR/USD simply consolidated on June 5. There would soon be a rise in volatility, and he resistance line at 1.1300 may be breached to the upside as price goes further upwards. However, there is bound to be a bearish reversal this week or next, owing to the bearish outlook on EUR pairs, which would probably materialize within the next several trading days.
USD/CHF: There is a clean Bearish Confirmation Pattern in the USDCHF chart, signaling a possibility of further bearish movement in the market. The market would continue going downwards until there is a bearish reversal on the EUR/USD – a factor that may cause the USD/CHF to spring upwards.
GBP/USD: There is now a short-term signal on the Cable, as price manages to go above the accumulation territory at 1.2900. The next targets would be the distribution territories at 1.2950, 1.3000 and 1.3050. The long-term bias on the market remains bullish, and the bias would hold as long as there is no bearish journey of about 500 pips.
USD/JPY: On Monday, the USD/JPY moved sideways in the context of a downtrend. Further sideways movement is possible, though when a breakout does occur, it would most probably be in favor of bears. This week, the demand levels at 110.00, 109.50 and 109.00 could be tested.
EUR/JPY: This currency cross is neutral in the short-term. Price made a faint attempt to go south – yesterday. Further southwards movement may help price reach the demand zones at 124.00, 123.50 and 123.00; an event that would eventually lead to a Bearish Confirmation Pattern in the chart. The outlook on JPY pairs is bearish for June 2017.
Performed by Azeez Mustapha,
Analytical expert
www.instaforex.com
InstaForex Companies Group