EUR/USD: Following the gap-up that happened on Monday, the EUR/USD has come down by 120 pips, affecting the neutrality of the market. For a bullish bias to form, the price needs to go above the resistance line at 1.4000; and for a bearish bias to form, the price needs to go below the support line at 1.1150. This is what would bring a Bearish or a Bullish Confirmation Pattern.
USD/CHF: This market is still in a sideways mode. The bias has become neutral in the short term and bearish in the medium term. There is a Bearish Confirmation Pattern on the 4-hour chart, and it is supposed that the price would continue its southward journey when a breakout occurs in the market. However, a serious bearish movement on the EUR/USD could cause the USD/CHF to rally.
GBP/USD: The Cable is in a bullish mode – the price has gone upward by 300 pips since the beginning of this week. The distribution territory at 1.4750 has been tested before the current shallow bearish correction. Since the EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50, it is possible for the price to go above the distribution territory at 1.4750. The worst thing that can happen this week is for the gap to be filled, i.e. the price moving below the accumulation territory at 1.4300.
USD/JPY: This currency trading instrument merely moved sideways on Tuesday. There is going to be a breakout this week, which would most probably favor bears, since the outlook on JPY pairs remains bearish. The demand levels at 104.50 and 103.50 would be reached.
EUR/JPY: There is a valid Bearish Confirmation Pattern on the EUR/JPY cross, though there is yet to be a strong movement this week. This cross might test the demand zones at 117.00, 116.00, and 115.50. The demand zones at 117.00 and 116.00 were tested last week, and they could be re-tested this week.
