Instaforex Trading Forecasts

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Daily analysis of major pairs for May 13, 2014

The price action on the USD/JPY has resulted in a ‘buy’ signal. The price is now trading above the demand level at 102.00, targeting the supply level at 102.50.

EUR/USD: The EUR/USD is a bear market. The market remains weak as the price tests the support line at 1.3750. The test has resulted in a rigorous challenge, and it is possible for the support line to give way. Should this happen, the next target would be the support line at 1.3700.

USD/CHF: In contrast to what the EUR/USD is doing, this pair is trending upwards with a strong determination. The pair is now trading above the support level at 0.8850, going towards the resistance level at 0.8900. It is even possible that the resistance level would be slashed upwards, as the price closes above it.

GBP/USD: The Cable is weak, but its weakness is not as strong as that of the EUR/USD. There is a bearish indication in chart. Nevertheless, the bulls are trying their best to halt the southward progress, which has resulted in a rally in the context of the current downtrend. As long as the price stays below the distribution territory at 1.6900, it would be assumed that the price could fall further.

USD/JPY: The price action on the USD/JPY has resulted in a ‘buy’ signal. The price is now trading above the demand level at 102.00, targeting the supply level at 102.50. The aforementioned demand level should act as a hurdle to possible pullbacks along the way. When our target at 102.50 is reached and breached to the upside, the next target would be at the supply level of 103.00.

EUR/JPY: So far since the open of the market this week, there has been a rally in the context of strong downtrend. The price could fall further unless it crosses the supply zone at 141.00 to the downside.

Source: www.instaforex.com

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From the accumulation territory at 1.6750, the Cable has bounced upwards. The upward bounce should pause at the distribution territory of 1.6850, so that the present bearish outlook may continue to be valid.

EUR/USD: The EURUSD trended gracefully to the downside last week. However, the graceful downward movement has been challenged at the support line of 1.3650. That support line needs to be breached to the downside, so that the bearish outlook may continue to be valid. We envisage the support line at 1.3600 as our target for this week.

USD/CHF: This pair moved gracefully to the upside last week. However, the graceful upward movement has been challenged at the resistance line of 0.8950. That resistance line needs to be breached to the upside, so that the bullish outlook may continue to be valid. We envisage the resistance line at 0.9000 as our target for this week.

GBP/USD: From the accumulation territory at 1.6750, the Cable has bounced upwards. The upward bounce should be paused at the distribution territory of 1.6850, so that the present bearish outlook may continue to be valid. The price should reach the accumulation territory at 1.6700 this week. Any movement above the aforementioned distribution territory will put the bearish outlook in jeopardy.

USD/JPY: The bias on this market has been bearish, but there is a stubborn barrier at the demand level of 101.50. Around this level, there has been a serious battle between the bull and the bear – as the bull is giving way with great reluctance. The price should go more southward, thus breaking the stubborn demand level at 101.50 to the downside.

EUR/JPY: Here too, the demand zone at 139.00 has been battered mercilessly, since the bears are determined to push the price lower than that demand zone. Should they succeed in doing this, the next price target would be at the demand zone of 138.50.

Source: www.instaforex.com

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The USD/CHF is still in an uptrend and it would retest the resistance level at 0.8950. This resistance level was tested last week: it could be breached to the upside this week.

EUR/USD: This is a bear market and the indication in the chart is in support of the sellers. This pair would retest the support line at 1.3650. This support line was tested last week: it could be breached to the downside this week. The Bearish Confirmation Pattern in the chart ensures that the sellers are confident of being in the right direction of the market.

USD/CHF: The USD/CHF is still in an uptrend and it would retest the resistance level at 0.8950. This resistance level was tested last week: it could be breached to the upside this week. The Bullish Confirmation Pattern in the chart ensures that the indication in the market is in the favor of the bulls.

GBP/USD: The Cable is currently moving in a range, although that is happening in the context of a downtrend. The price currently hovers between the distribution territory at 1.6850 and accumulation territory at 1.6800. Either of the territories must be breached so that the price can continue its journey. One thing is this; it is more probable that the price would continue journeying downwards.

USD/JPY: The pair is bearish – an established bearish outlook. The price is now trading below the supply level at 101.50, going toward the demand level at 101.00. Actually our target for the week is at the demand level of 100.50.

EUR/JPY: This is also a bear market, with barriers to any short-term rally being situated at the supply zones of 139.00 and 139.50. Meanwhile, the price could go on towards the demand zone at 138.50, even breaching it to the downside.

Source: www.instaforex.com

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The situation on the USD/CHF is now getting interesting. After a long period of siege and repeated bullish attacks, the price managed to close above the support level of 0.8950. For the bullish victory to continue, the price needs to move towards the resistance level at 0.9000.

EUR/USD: After much determined effort on the side of the bears, the resistance line at 1.3650 was breached to the downside. It was not an easy task, for the price had been making that attempt since the middle of this month. It is now intriguing to see what the price would do next. According to the established bias, the price might continue trading downwards, going towards another support line at 1.3600.

USD/CHF: The situation on the USD/CHF is now getting interesting. After a long period of siege and repeated bullish attacks, the price managed to close above the support level of 0.8950. For the bullish victory to continue, the price needs to move towards the resistance level at 0.9000. This week would thus see whether this target would be realized or not. Yes, the situation is interesting!

GBP/USD: This market appears to be unable to sustain the recent bullish indication on it. From the distribution territory at 1.6900, the market nosedived and closed below the distribution territory at 1.6850. A test of the accumulation territory at 1.6800 would mean the end of the bullish indication; which means short trades may then be sought.

USD/JPY: There is now a Bullish Confirmation Pattern on this pair, as it moves determinedly upwards. The price ought to easily breach the supply level at 102.00 to the upside, as it goes towards another supply level at 102.50.

EUR/JPY: The southward outlook on this market remains valid, in spite of the current shallow rally in the market. The rally is currently being challenged at the supply zone of 139.00 – a zone from which price could nosedive.

Source: www.instaforex.com

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The USD/JPY is currently testing the supply level at 102.00, which ought to be broken to the upside so that the uptrend can continue. A serious movement is expected today.

EUR/USD: In a context of an uptrend, this pair has rallied so far this week. The rally is, nevertheless, insignificant and it should not go above the resistance line at 1.3700. From that resistance line, or before the price reaches the line, it is expected that the southward journey may resume, possibly taking the price towards the support line at 1.3600.

USD/CHF: Last week, this pair managed to close above the resistance level at 0.8950, but it could not remain above it. There has been a shallow movement towards the south – which might be seen as a good opportunity to go long. Generally, the pair should not go below the support level at 0.8900 (in a worse-case scenario for the bulls). For the bullish trend to remain valid, the price should close again above the resistance level at 0.8950, even going far above it.

GBP/USD: The condition on this currency trading instrument requires tact. The overall tendency in the market is towards the north. A close look at the market reveals that the price has better chances of going northward than going southward. This would even become more conspicuous when the price goes towards the distribution territory at 1.6900.

USD/JPY: The USD/JPY is currently testing the supply level at 102.00, which ought to be broken to the upside so that the uptrend can continue. Failure to break the supply level to the upside could result in a noteworthy pullback in the direction of the south. Whether the bulls win or the bears win, a serious movement is expected today.

EUR/JPY: The established bullish bias in the market is not yet overridden, unless the price goes above the supply zone at 139.50. It still remains logical to seek short trades.

Source: www.instaforex.com

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There is a temporary pullback on the USD/CHF, which ought not to take the price below the support level at 0.8900, so that the bullish bias can remain valid. The price may go further upwards after the pullback has ended.

EUR/USD: The bearish bias on this pair is still present, although there is a shallow rally in the market. The rally in the context of a downtrend is not supposed to take the price above the resistance line at 1.3700 – a point at which it would be clear that the bearish bias is no longer valid and it would be logical to seek short trades.

USD/CHF: There is a temporary pullback on the USD/CHF, which ought not to take the price below the support level at 0.8900, so that the bullish bias can remain valid. The price may go further upwards after the pullback has ended. On the other hand, a movement below the aforementioned support level would render the bullish outlook invalid.

GBP/USD: On the Cable, there is now a serious rally in the context of a downtrend. From the accumulation territory at 1.6700, the price rallied and closed above the accumulation territory at 1.6750. Further rally should be contained at the distribution territories at 1.6800 and 1.6850. Otherwise, the long-term bearish bias would be in jeopardy.

USD/JPY: This market is a classical example in which false breakouts are no longer a curiosity. In addition, sustained trending moves are rather rare. It would be OK to stay away from the market unless there is a protracted directional move.

EUR/JPY: This market, which bounced upwards after testing the demand zone at 138.00, would have the upward bounce contained at the supply levels at 139.00 and 139.50. Further southward movement is expected from here.

Source: www.instaforex.com

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On Monday, the USD/JPY broke upwards significantly. The supply level at 102.50 is an easy target for the bulls. The target would be breached to the upside as the price goes towards another supply level at 103.00.

EUR/USD: The bearish bias on this pair is still present. As it was commented earlier, the shallow rally in the market was a great opportunity to sell short again. This is exactly what happened; the price has turned bearish again, now besieging the support line at 1.3600. The support line may thus be breached to the downside.

USD/CHF: Reluctantly and slowly, this market is moving close to the resistance level at 0.9000. The market has been making attempts to achieve this for the past two weeks, and now, the probability that the target would be achieved is very high. Once the resistance level is tested repeatedly enough, it may give way and allow the price to go towards another resistance level at 0.9050.

GBP/USD: This is a bear market also, with a confirmation of the bearish bias. The Cable is trading below the distribution territory at 1.6800. The location of the battle is currently at the price territory at 1.6750. This is the price territory from which it is expected that the price may dive further and retest the accumulation territory at 1.6700. This week would see whether the accumulation territory would be breached to the downside.

USD/JPY: On Monday, the USD/JPY broke upwards significantly. The supply level at 102.50 is an easy target for the bulls. The target would be breached to the upside as the price goes towards another supply level at 103.00. Yes, the Bullish Confirmation Pattern in the chart gives the confidence that the price may continue going upwards.

EUR/JPY: There is a vivid downtrend on this cross; plus the current rally is simply a good point to open another short trade, unless the price crosses the supply zone at 139.50 to the upside.

Source: www.instaforex.com

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On Friday (June 6, 2014), the USDCHF closed at 0.8934. The price has already assumed a bearish stance, which may continue this week. The next target to be reached is at the support level of 0.8900.

EUR/USD: This market was volatile last week. Now it looks as though the price is poised to go northwards, but this is cannot be confirmed until the price goes above the resistance line at 1.3700. Should this happen, it would result in a Bullish Confirmation Pattern in the chart.

USD/CHF: On Friday (June 6, 2014), the USDCHF closed at 0.8934. The price has already assumed a bearish stance, which may continue this week. The next target to be reached is at the support level of 0.8900. The bullish target at the resistance level of 0.9000 has already been hit, and now is the time for correction. The correction has now resulted in a confirmed bearish bias.

GBP/USD: Here, it would be recommended that long trades be sought. Even, pullbacks could be bought; which gives higher probability of profits. Why? The price action is bullish in nature and as long as the price is able to stay above the accumulation territory at 1.6750, the bullish outlook is logical.

USD/JPY: The bullish outlook is also logical on the USD/JPY, the price retraced southward last week, but it is now making another bullish attempt. Closing on Friday at an interesting market level of 102.49, the price may go further upwards from there.

EUR/JPY: This market is bullish, but it needs to cross the supply zone at 140.00 to the upside, for the bullish bias to become more formidable. A failure to close above the supply level this week may make the price go down from its current position.

Source: www.instaforex.com

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The USD/JPY is still bullish, but the price needs to close clearly above the demand level at 102.50. The movement above that level has to be sustained so that the current bullish outlook can continue to make sense.

EUR/USD: The market still consolidates, but it can be seen clearly that the bearish bias on the market remains rational. At the time of writing this analysis, the price was trading below the resistance line at 1.3600. It may be easy for the price to go further downwards towards the support line at 1.3550.

USD/CHF: The price was almost going bearish when the bulls pushed up the USD/CHF price again, which once more resulted in a Bullish Confirmation Pattern in the chart. This time around, the market may probably reach the long-term target at the resistance level of 0.9000. After all, the target was challenged last week, but the price failed to close above it. The price may succeed in closing above it this week.

GBP/USD: Surprisingly, and in contrast to what its EUR/USD counterpart is doing, this market remains bullish. The price needs to close above the distribution territory at 1.6850, so that the bullish run could continue.

USD/JPY: The USD/JPY is still bullish, but the price needs to close clearly above the demand level at 102.50. The movement above that level has to be sustained so that the current bullish outlook can continue to make sense. Should the bullish attempt continue, the supply level at 103.00 could be tested. On the other hand, the price could drop towards the demand level at 102.00 – something that could put the bullish outlook in jeopardy.

EUR/JPY: So far this week, this market has pulled back. The pullback may not take the price below the demand zone at 139.00. This is an area where the market may possibly rally again.

Source: www.instaforex.com

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As it was normally expected, there has been a shallow pullback on the Cable. But the price may go further higher to breach the distribution territory at 1.7000 to the upside.

EUR/USD: In spite of some vivid attempts by the bulls to push the price upwards, the price remains bearish. On Friday, June 13, 2014, the price closed at 1.3539 (below the resistance line at 1.3550). The support line at 1.3500 is thus an easy target this week, though the price can close below it while moving further downwards.

USD/CHF: It is interesting that the price on this pair has refused to lift its siege at the resistance level of 0.9000. The battle is very hot around this resistance level – having been carried on for more than two weeks. The bulls refuse to yield and the bears are too stubborn to surrender; though the latter have been battered furiously. It is now clear that the bulls are determined to keep the price bullish. Therefore, a break above the resistance level at 0.9000 would mean a landmark victory for the bulls, provided the price is able to stay above it.

GBP/USD: As it was normally expected, there has been a shallow pullback on the Cable. But the price may go further higher to breach the distribution territory at 1.7000 to the upside. In fact, it may go to another distribution territory at 1.7050. The distribution territory at 1.7000 is a psychological level, and therefore, a break above it would be noteworthy.

USD/JPY: The USD/JPY remains bearish; though there is a formidable challenge to that. Should the price fail to stay below the demand level at 102.00, the bearish outlook may be rendered invalid.

EUR/JPY: This is also a bear market, with an immediate supply zone at 138.50. The price closed at 138.14 on Friday and it is supposed to dive further.

Source: www.instaforex.com

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The Cable has successfully tested the distribution territory at 1.7000. There has been a hollow bearish retracement after this, but the price would go back to test that distribution territory again with a possibility of breaking it to the upside.

EUR/USD: This currency pair is weak, but there is now a rally attempt on it. At this juncture, it must be mentioned that any surge of energy in Euro is supposed to be short-lived because the long-term bias on Euro is bearish. However, the short-term surge may be serious enough to bring some gains to the bulls that look forward to a limited rally.

USD/CHF: The USD/CHF has been unable to close above the resistance level at 0.9000 (which is a must for the bullish trend to continue). Right now, there is a hollow pullback in the price. The pullback could be contained at the support level of 0.8950. Any movement below the support level may mean an end to the current bullish outlook.

GBP/USD: The Cable has successfully tested the distribution territory at 1.7000. There has been a hollow bearish retracement after this, but the price would go back to test that distribution territory with a possibility of breaking it to the upside. Should this happen, the price may close above the territory, going further towards another distribution territory at 1.7050.

USD/JPY: This currency trading instrument has gone bearish since last week – and that stance is still valid. This is because there is a clean Bearish Confirmation Pattern in the chart, and any bullish attempt may be a trap for the unwary buyer. Meanwhile, the price is supposed to test the demand level at 101.50 very soon.

EUR/JPY: The cross is showing some volatility on it. The volatile movement is trying to culminate in favor of the bulls. This favorable movement to the bulls would be challenged at the supply zone at 138.50; which is a zone from which the price may fall again.

Source: www.instaforex.com

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On Friday, June 20, 2014, the EUR/JPY cross closed at 138.81on a bullish note. The bullish signal is valid and the movement above the demand level at 138.50 supports the possibility of the price going higher.

EUR/USD: This pair was able to generate a ‘buy’ signal last week. But there is now a dip in the price. The dip gives another opportunity to open a long trade because the price may bounce upwards from that point. In fact, the price has been making some bullish attempt and it is not too late to join.

USD/CHF: The USD/CHF was able to generate a ‘sell’ signal last week. But there is now a rally in the price. The rally gives another opportunity to open a short trade because the price may plunge from that point. In fact, the price has been making some bearish attempt and it is not too late to join.

GBP/USD: The Cable has been bullish within the past several trading days. From the accumulation territory at 1.6700, the price shot upwards by 350 pips, breaking the formidable distribution territory at 1.7000 to the upside and testing another distribution territory at 1.7050. There is now a shallow southward retracement – which is normal – for the price may go up again.

USD/JPY: This currency trading instrument has generated another bullish signal, but the target is not a long-term one. One may go long and exit as soon as the price hits the supply level at 102.50.

EUR/JPY: On Friday, June 20, 2014, the EUR/JPY cross closed at 138.81on a bullish note. The bullish signal is valid and the movement above the demand level at 138.50 supports the possibility of the price going higher. The first target is the supply zone at 139.00, after which the price may go upwards towards another supply zone at 139.50.

Source: www.instaforex.com

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After testing the accumulation territory at 1.7000, the Cable has been making some attempt to go further upwards. It may thus reach the distribution territory at 1.7050 again, and possibly break it to the upside.

EUR/USD: Since this pair assumed a bullish bias, it has not gone upwards that significantly. An upward move of less than 140 pips is not very significant, plus the price has experienced a mild bearish correction after that. This bearish correction should not take the price below the support line at 1.3550. Should the price move upwards, it could test the resistance line at 1.3650.

USD/CHF: When this currency instrument became bearish, the bearish move has not been very great. The bearish move was less than 100 pips. Following some rally attempts, the market was able to close below the resistance level at 0.8950; and when further bearish movement occurs, it may take the market towards the support level at 0.8900. It should not be forgotten that the resistance level at 0.9000 is a great barrier to the bulls’ interest.

GBP/USD: After testing the accumulation territory at 1.7000, the Cable has been making some attempt to go further upwards. It may thus reach the distribution territory at 1.7050 again, and possibly break it to the upside. The bullish bias is still clear and confirmed; so the odds of the price going further higher are greater.

USD/JPY: The movement on this pair so far has been erratic and unpredictable; therefore intraday and scalping trading methods may be better than swing and position trading methods. Right now, there is a short-term bearish signal in the chart.

EUR/JPY: This cross is still bullish – though the situation is unstable. After a bearish correction, the market is trying to rally and a test of the supply zone at 139.00 would reveal how determined the bulls are.

Source: www.instaforex.com

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Since the EUR is strong and the USD is weak, it is no wonder that the EUR/USD pair is making some commendable bullish efforts. Currently, the resistance line at 1.3650 is under siege. The price would break that resistance line to the upside.

EUR/USD: This is a bull market, which should continue to be bullish. Since the EUR is strong and the USD is weak, it is no wonder that the EUR/USD pair is making some commendable bullish efforts. Currently, the resistance line at 1.3650 is under siege. The price would break that resistance line to the upside.

USD/CHF: This is a bear market, which should continue to be bearish. Since the USD is weak and the CHF is strong, it is no wonder that the USD/CHF pair is making some commendable bearish efforts. Currently, the price is going towards the support level at 0.8900. The price could break the support level to the downside.

GBP/USD: This currency instrument closed at 1.7035, on a bullish note. The market has constantly showcased the determination to go bullish, and therefore, the distribution territory at 1.7050 would easily be breached to the upside. When this happens, the market may be trying to go towards another distribution territory at 1.7100.

USD/JPY: The USD/JPY is now trading below the supply level at 101.50, and it may go towards the demand level at 101.00. Since the market has proven to be prone to short-term swings, one may want to put a take profit level at the demand level of 101.00. Should the bearish outlook continue to be strong, the demand level could even be breached to the downside.

EUR/JPY: This cross is also weak, but the bulls are trying to push the price further higher. The demand zone at 138.00 has been tested and the price has bounced from there, but it should not go above the supply level at 138.50, for the bullish bias to continue to be valid.

Source: www.instaforex.com

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The USD/CHF has gone further downwards as expected. The price is currently trading below the resistance level at 0.8900, going towards the support level at 0.8850.

EUR/USD: This pair has now made clear its intention to go further higher. The support line at 1.3650 has been breached successfully: the price closed above it and moved upwards with adept alacrity. The nest target would be the resistance line at 1.3700, which is almost reached by the price.

USD/CHF: There is a Bearish Confirmation Pattern in this market. The USD/CHF has gone further downwards as expected. The price is currently trading below the resistance level at 0.8900, going towards the support level at 0.8850. Should the support level be breached to the downside, the next target would be the support level at 0.8800.

GBP/USD: As it was forecasted on Monday, the Cable has gone further upwards in what is termed as a serious Bullish Confirmation Pattern in the chart. Since the middle of June 2014, the market has been bullish seriously – punctuated by temporary pullbacks along the way. The price has now closed above the accumulation territory at 1.7100. The next target is at the distribution territory at 1.7150.

USD/JPY: The USD/JPY has been going as forecasted, for the bearish signal in the chart is now getting stronger and stronger. The pair is now moving below the supply level at 101.50, going further downwards. The price may end up reach the demand level at 101.00.

EUR/JPY: As a result of a sudden surge of stamina in the EUR, the currency trading instrument is now going upwards – a morbid threat to the extant bearish bias. Should the strength in the EUR continue, the price might touch the supply zone at 139.00, and by then, the bearish indication would be completely over.

Source: www.instaforex.com

Learn from the Generals of the Markets: Market Generals

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The Cable is still facing a big challenge around the price territory at 1.7150. However, the market is expected to go further upwards as a result of the strong northward bias on it.

EUR/USD: As it was said in the last forecast, this pair has already assumed a new bearish bias, going downwards. Right now, the price closed below the resistance line at 1.3600. The target for this week is at the support line at 1.3550; and with the Bullish Confirmation Pattern in the market makes it is logical that that the price would go further downwards.

USD/CHF: After much effort from the bulls, the USD/CHF has turned bullish, going further north. The resistance level at 0.8950 has been challenged and it would be breached to the upside as the bullish energy continues. But it is unlikely that the price would also breach the great resistance level at 0.9000 to the upside; therefore buyers may want to take their profits around that resistance level.

GBP/USD: The Cable is still facing a big challenge around the price territory at 1.7150. However, the market is expected to go further upwards as a result of the strong northward bias on it. Should this happen, the price would go towards the distribution territory at 1.7200.

USD/JPY: This is a bull market, and the price ought to go further upwards. Nevertheless, the bullish journey is not without difficulties. As long as the price is above the demand level at 101.50, the bullish outlook is sensible.

EUR/JPY: This market is not yet attractive, and one may do well to abstain from it until there is a clean directional bias in the market. The EUR is weak and the Yen is also weak, but one must be strong than the other so that a direction can be determined.

Source: www.instaforex.com

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The GBP/USD still shows the determination to go further upwards. It would re-test the distribution territory at 1.7150, and possibly break it to the upside.

EUR/USD: The signal on this pair is bearish, but it can be seen that the price is trying to bounce upwards. This is a normal rally in the context of a downtrend, after which the price should dive again, possibly reaching the support line at 1.3550. Meanwhile, this rally should not take the price above the resistance line at 1.3650, so that current bearish signal would be valid.

USD/CHF: The USD/CHF has gone downwards a little after testing the resistance level at 0.8950. The downward movement should be contained at the support level of 0.8900, so that the bullish signal would continue to be valid. The price could go upwards again and retest the resistance level at 0.8950. It may break it to the upside, but it is very unlikely that it would go above the great resistance level at 0.9000.

GBP/USD: The GBP/USD still shows the determination to go further upwards. It would re-test the distribution territory at 1.7150, and possibly break it to the upside. The Bullish Confirmation Pattern shows that the price has a very high possibility of going upwards. It may reach the distribution territory at 1.7200.

USD/JPY: After forming a bullish signal, this currency trading instrument has experienced a bearish correction which is strong enough to challenge the existing bullish signal. A movement below the demand level at 101.50 could mean the end of the bullish signal.

EUR/JPY: This market is not yet attractive for swing trading (though it looks great for intraday traders and scalpers). For swing trading, one may wait until the current bearish bias is confirmed or the previous bullish bias is restored.

Source: www.instaforex.com

Learn from the Generals of the Markets: Market Generals

101

The USD/JPY is still in a bearish mode, although the price is making some rally attempts. The rally may be contained at the supply level of 101.50. This is an area from which the price may go further downwards.

EUR/USD: The bias on this market is bearish and the price is expected to go further downwards. On Friday, July 11, 2014, the price closed at 1.3606: it would easily test the support line at 1.3600 this week. This week may see the price going below that support line.

USD/CHF: Unless one is a scalper or a day trader, this market is not currently attractive. It seems the bulls and the bears have equal strength (no-one is stronger than the other). The market would need to break either above the resistance level at 0.8950 or below the support level at 0.8900. After this, one would know the direction to take. If the resistance level is breached, one would seek long trades. Reverse the logic for a scenario in which the support level is breached.

GBP/USD: This market is also a bull market, in spite of the consolidation on it. The consolidation is simply a pause in the market, after which the bullish journey would resume. The price is expected to test the distribution territory at 1.7200 this week.

USD/JPY: The USD/JPY is still in a bearish mode, although the price is making some rally attempts. The rally may be contained at the supply level of 101.50. This is an area from which the price may go further downwards. When this happens, the price may touch the demand level at 101.00.

EUR/JPY: The Bearish Confirmation Pattern in the chart adds to the possibility that this cross would be going further downwards. The demand zone at 137.50 was tested and it could be tested again. The supply zone at 138.00 could also contain any possible rally along the way.

Source: www.instaforex.com

102

The EUR/JPY experienced a rally on Monday. The rally is supposed to be contained at the supply zone of 138.50. Should the price go above the supply zone, it could pose a threat to the extant bearish outlook.

EUR/USD: This pair continues to prove difficult for swing traders, but very agreeable to intraday traders and scalpers. It is better for swing traders to wait till a clean direction is formed: either the resistance line at 1.3650 is broken to the upside or the support line at 1.3600 is broken to the downside. After this, a strong direction could be determined.

USD/CHF: The situation on the USD/CHF is quite similar to that of the EUR/USD. This is an equilibrium market, and it would be prudent to stay away from it until there is a directional movement – a breakout from either above the resistance level at 0.8950 or the support level at 0.8900.

GBP/USD: It now seems that the bulls are unable to breach the distribution territory at 1.7150 to the upside. In fact, the market is now trading below the distribution territory at 1.7100. A break below another accumulation territory at 1.7050 would signal the end of the dominant bullish outlook.

USD/JPY: This currency trading instrument is experiencing some rally in the context of an uptrend. This rally should be checked at the supply level at 102.00. Otherwise, the bearish outlook would be invalid. The price should fall down further.

EUR/JPY: The EUR/JPY experienced a rally on Monday. The rally is supposed to be contained at the supply zone of 138.50. After this, the price may go towards the demand zone at 138.00; breaking to the downside, and going towards another demand zone at 137.50 (which is the target for this week). Should the price go above the supply zone at 138.50, it could pose a threat to the extant bearish outlook.

Source: www.instaforex.com

Learn from the Generals of the Markets:Market Generals