Daily analysis of major pairs for April 3, 2017
The EUR/JPY consolidated from March 22 to March 31, in the context of a downtrend. Price broke southwards on March 31, closing below the supply level at 119.00 that day. The expectation of any meaningful bullish movement is now invalid, as the outlook on JPY pairs is bearish for the month April; plus the EUR/JPY would be going further and further south as EUR shows more weakness.
EUR/USD: The EUR/USD tested the resistance line at 1.0900 last week, and then nosedived to almost test the support line at 1.0650. This has now resulted in a Bearish Confirmation Pattern in the chart, and price could move further and further southwards, testing the support lines at 1.0600 and 1.0550. The outlook on EUR pairs is bearish for April, and dips would be witnessed in most cases.
USD/CHF: This pair went upwards last week, after testing the support level at 0.9850. From that support level, price went upwards by 180 pips, closing above the support level at 1.0000, which is a significant psychological level. The next targets for this week are located at the resistance levels of 1.0050 and 1.0100, which would render the recent bearish outlook on the market invalid. The movement on the USD/CHF would largely be determined by whatever happens to the EUR/USD.
GBP/USD: In spite of what happened here last week, the Cable remains bullish. Price went slightly upwards in the beginning last week and then fell towards the accumulation territory at 1.2400 and then rose towards the distribution territory at 1.2550. Price would rise further upwards, testing the distribution territory at 1.2600 (which was also tested last week). GBP pairs would trend upwards and downwards strongly this month; though most movement would be downwards.
USD/JPY: This currency trading went upwards by 170 pips last week – in a bullish trend that was not as strong as it was expected. Price could go further upwards, but that would not be strong, because the hope of any significant rally on the USD/JPY is gone. In fact, the outlook on the market (as well as other JPY pairs), is bearish. Long-term long trades are not currently recommended.
EUR/JPY: The EUR/JPY consolidated from March 22 to March 31, in the context of a downtrend. Price broke southwards on March 31, closing below the supply level at 119.00 that day. The expectation of any meaningful bullish movement is now invalid, as the outlook on JPY pairs is bearish for the month April; plus the EUR/JPY would be going further and further south as EUR shows more weakness.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
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