Monday, 9 May 2016

Forex Market Currency Pair Analysis - 9 May 2016





EUR/USD: This pair moved upwards on Monday and Tuesday, tested the resistance line at 1.1600, and then started a bearish movement. From the resistance line at 1.1600, the price dipped by 200 pips, to close at 1.1403 on Friday (May 6, 2016). The bears would target the support lines at 1.1350 and 1.1300 this week, because some weakness is expected in the EUR.

GBP/USD: After testing the distribution territory at 1.4750, the GBP/USD dropped by 320 pips, closing below the distribution territory at 1.4450. This kind of southward reversal has already resulted in a bearish outlook on the market. The GBP should be seen strengthening versus some currencies, though it might be facing some difficulties regarding a rally against the USD, because the USD would be strong this week. 

USD/JPY: The USD/JPY only moved sideways last week, in the context of a downtrend. The bearish bias on the market is still valid, and further downward movement is possible. The only exception is that a possible rally in the USD might make it somewhat challenging for the bears to push the price further downwards this week. 

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