Daily Analysis of Major Pairs for April 11, 2016
EUR/USD: This pair had a flat movement last week, for the price was unable to close above the resistance line at 1.1450 in spite of forays into it (the resistance line at 1.1400 was also subjected to desperate attacks from the bulls). This week, we would most possibly see the price go above the resistance line at 1.1450, targeting another resistance line at 1.1500.
USD/CHF: The USD/CHF consolidated throughout last week, not going below the support level at 0.9500. The support level should be broken to the downside, reaching another support level at 0.9000. A breakout would happen this week, which would most probably favor the bears.
GBP/USD: The Cable was highly volatile last week, reaching a high of 1.4319 and a low of 1.4004. The overall bias remains bearish in the near term, though the bulls are not keeping their fingers crossed this time around. They would most probably effect a rally, which would jeopardize the current bearish bias, especially when the distribution territory at 1.4400 is overcome. This would require a strong rally, which would occur because the outlook on GBP pairs is bright for this week.
USD/JPY: Since March 29, 2016, the USD/JPY has dropped by 600 pips. Last week, the drop was over 350 pips. There is a strong Bearish Confirmation Pattern on the chart, which would hold out as long as the price continues to journey southwards. This week, bears would target the demand levels at 107.50, 107.00 and 106.50.
EUR/JPY: Last week alone, this cross pair dropped by over 450 pips, almost testing the demand zone at 122.50. There is a very strong bearish outlook on the market (and of course, other JPY pairs). These bearish movements were anticipated for around the end of the month, but they have started earlier than imagined. Further bearish movement is expected on this cross pair, except the JPY is weakened considerably.
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