Razvan Mihai, CFTe
Forex Rally
EURUSD - Finally Out
After along period of sideways move the price of EURUSD managed to break the pattern.The bulls won the tug of war with the bears, managing to break above the 1.1000 resistance and hit the next round number level from 1.1200. This resistance held on pretty ok, the price bounced from it back towards 1.1100.
Considering the current conditions of the market, I would expect for the price to continue the uptrend towards the next round number level and key resistance from 1.1300.This theory would be confirmed by another break above the local resistance from 1.1200.
USDJPY - Strong Downward Pressure
Last week,I was expecting the USDJPY to break the upper line of the Pennant pattern and rally towards the next key resistance level from 123.63. Despite these expectations, based on technical conditions, the price broke below the lower line and plunged all the way back to the key support level from 116.16.
The plunge seems to not stop at this level this time. A break below the support already occurred. If the break will be confirmed by a close on a four hour time frame,below this support, I will expect the price to continue the drop all the way to 115.00, or even lower by the end of this week.
AUDUSD - Retesting the Trend Line
AUDUSD’s price has once more got to retest the main trend line of the current uptrend.The price dropped at the end of last week almost 200 pips, from 0.7240.Currently is trading on the second trend line, which now became the main one of the current trend.
A break below the local low set at 0.7050, would signal a continuation of the drop all the way to the key support of 0.7000. On the other hand a rally above the resistance set at 0.7128 would signal a rally towards the current highs, or maybe to a new higher high for the trend
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