Posted by fxmars.com
EURUSD:
During the last week the price broke in bullish direction the pink bearish trend line from July 10. This happen after the price created a bottom at 1.33634. At the same time, the stochastic oscillator broke its green descending triangle in bullish direction, which got the indicator out of the oversold area. It also confirmed a double bottom formation (blue) with breaking its neck line (red) in bullish direction. As you see, these are four bullish signals that speak of an eventual increase of the price. For this reason, we expect the price to increase at least to the resistance at 1.35104. We could also follow the Fibonacci retracement, because the whole bullish movement might appear to be a retracement rather than a change in the trend.
USDJPY:
After the rapid increase of the price during the last trading week, the price reached the purple resistance around 103.000 and then it bounced in bearish direction. At the same time, the stochastic oscillator got out of the area of the overbought market, which supports the eventual bearish decrease. Furthermore, there is a bearish divergence (blue) between the last two tops of the price and the stochastic oscillator, which signalizes of the eventual drop too. For this reason, we expect a decrease of the price, which could even reach the many times tested support at 101.228.
GBPUSD:
After moving in the purple bearish corridor from July 14, the price increased its intensity and did a bearish break through the lower level of the corridor. This speaks of an eventual decrease of the price at least to the level 1.67337. At the same time, the stochastic oscillator has entered in the area of the oversold market and it is about to get out of it in bullish direction. For this reason, we admit that the price could do an eventual bullish correction, which could test the already broken lower level of the purple corridor as a resistance.
