On the first day of the week there was a low activity of trading on forex market. It was provoked by lack of significant macroeconomic data. The exception was yen, that was losing its positions all over the place in expectation of meeting of Japan Bank.
Eur/usd pair continued its ascending movement heading towards the level of 1.3700, after successfully passing the resistance at the level of 1.3230.
Thus, in a medium-term perspective one can look for possibilities to open moderate long positions on the pair. Short-term predictions are the following:
As one can see from an hourly graph eur/usd is trading within a two-week ascending trend. The attempts to test the line of support of the trend can be used for short-term purchases with close stops that should be located below the trend line. In case of trend line being broken down it will be logical to search for opportunities to open short positions on the pair.
The situation of the pair in a long-term view is mixed. On the one hand we see a breakdown of the line of 8-month ascending trend. On the other hand, the fact that after failures of such long tendencies the market often returns into the trend. That is why the opening of medium-term and long-term bear positions on the usd/jpy pair are more secure in case of renewal of the minimum (94.70) at a given timeframe.
And clockwise the technical picture looks pretty nice for occupying short positions. That will be possible provided the attempts to return to long-term ascending trend will be unsuccessful. They are of 99.00 – 99.50 is the local resistance. One may try to descend with close stops (99.60-99.80).
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