Global macro overview for 12/12/2017

The ZEW Economic Sentiment Index, measuring the moods of German financial analysts in December, fell from 18.7 points up to 17,4 points, while the market participants expected a reading of 18.0 points. Although at the beginning of November the Frankfurt exchange was breaking historic records, the moods of German economists remain only moderately optimistic. The December reading of the ZEW index was over one quarter lower than the long-term average of 23.7 points. What's more, throughout the whole year the ZEW index remained on a quite stable on a moderate level. A slightly smaller percentage of the surveyed economists (46.6% and 47% respectively) assumes maintaining an upward trend on historic indexes b in Tokyo (Nikkei225) and New York (Dow Jones). The bears' team is close to extinction - only in the case of the British FTSE, the percentage of those who are expecting a decrease in share prices exceeds 20%. On the other hand, inflation expectations are clearly growing. Already more than 71% of German economists expect inflation to increase in the US. It's up to 9.7% more than in November. In the case of Germany and the United Kingdom, more than half of respondents expect inflation to accelerate within the next six months.

A monthly ZEW survey is based on the answers sent by around two hundred German financial experts. Analysts are asked about expectations for the next six months. Only three answers are possible: increase/improve, remain unchanged, drop/worsen.

Let's now take a look at the German DAX30 Index technical picture at the H4 time frame. The Head & Shoulders pattern is still valid, but the market is not in hurry to break to the downside. The local support at the level of 13,085 has been defended well, but the key level to the upside is still the technical resistance at the level of 13.254.

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Global macro overview for 12/12/2017

The CPI data has beat the market participants expectations of 0.2% as the number released was at the level of 0.3% (0.1% prior). On yearly basis, the CPI jumped from 3.0% to 3.1%, but still, today's November CPI inflation data has not become a pretext to a recovery rally in British Pound (although it can not be ruled out that the reaction will be delayed). The market participants will receive the labor market data (this is tomorrow), and the dynamics of retail sales and the Bank of England meeting (interest rate decision on Thursday). Moreover, Brexit concerns still weigh on British Pound - yesterday speculations appeared that the ministers in the government of Prime Minister May, Boris Johnson and Michael Gove (the faction opting for the so-called hard Brexit) had a different vision for access negotiations to the single market and expected that May will take into account their demands in exchange for the support they have given her in recent days when negotiating an agreement with the EU that can open the door to the second, key phase of the talks. It is difficult to assess how much of this truth - the media are still hacking the thread of "undisciplined" ministers - but it is a signal that the second and the most important from the point of view of the economic interests of Great Britain will not be so easy.

It will be important for global investors to see how quickly it will be possible to agree on the so-called EU transition period after Brexit (possibly to last about 2 years) and under what exact conditions. Only then will the market participants might witness so-called relief rally in British Pound, which will reduce concerns related to the so-called hard or chaotic Brexit.

Let's now take a look at the GBP/JPY technical picture at the H4 timeframe. The price has dropped from the local high at the level of 153.38 and stopped at 38% Fibo at the level of 150.92. Currently, the price is testing the dashed black trend line around the level of 151.58. The key resistance is seen at the level of 151.91.

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Trading Plan for EUR/USD and US Dollar Index for December 12, 2017

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Technical outlook:

The EUR/USD pair still seems to be looking to drop one last time before pulling back. It is expected to terminate through 1.1700 levels at least, which is the fibonacci 0.618 support as well. According to the wave counts 1.1700 could be labelled as wave C until the structure changes going forward. To simplify the view, until prices remain below 1.1940/50 levels, EUR/USD bears are expected to remain in control. A sustained break below 1.1700 levels would push through 1.1550 levels and lower. On the flip side a bullish reversal around 1.1700 would produce at least a meaningful pullback, if not an extended rally.

Trading plan:

Please remain short for now with a target of 1.1600/1.1700 levels.

US Dollar Index chart setups:

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Technical outlook:

The US Dollar Index is looking poised to push through 94.10/20 levels, before producing a meaningful pullback. The wave structure still looks constructive for bulls and it would remain to be so till prices stay above 92.50 levels going forward. Please note that the corrective drop is also expected to find support around 93.40/50 mark before the bullish run continues. As labelled here, it the wave count holds true, the US Dollar Index is preparing to push through 95.00 and 98.00 levels in the weeks to come by. Whether you plan to trade short or medium term, looking to buy on dips is a safe strategy.

Trading plan:

Please remain long and also plan to buy on dips, target 92.20.

Fundamental outlook:

There are no major events lined up for the day.

Good luck!

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Bitcoin analysis for December 12, 2017

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Bitcoin (BTC) has been trading upwards. As I expected, the price tested the level of $17,417. South Korea's top financial regulators have clarified their position following reports by local media that they have been considering a possible ban on all cryptocurrency transactions, particularly bitcoin. The technical picture looks bullish.

Trading recommendations:

According to the 30M time frame, I found the broken intraday bullish flag, which is a sign that selling looks risky. The buying pressure is present and my advice is to watch for potential buying opportunities. The upward targets are set at the price of $17,423 and $18,600.

Support/Resistance

$17,423 – Intraday resistance (price action)

$16,194 – Intraday support

$15,945 – Intraday support 2 (price action)

$17,423 – First objective point

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

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Technical analysis of NZD/USD for December 12, 2017

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Overview:

  • On the four-hour chart, the USD/CHF pair is trading in the bullish trend from the support levels of 0.6881 and 0.6830. Currently, the price is in a bullish channel. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market. As the price is still above the moving average (100), immediate support is seen at 0.6881, which coincides with the first support (23.6% of Fibonacci). Consequently, the second support is set at the level of 0.6830. So, the market is likely to show signs of a bullish trend around the spot of 0.6830/0.6881. In other words, buy orders are recommended above the support of (0.6881) with the first target at the level of 0.6993. Furthermore, if the trend is able to breakout through the first resistance level of 0.6993. We should see the pair climbing towards the price of 0.7043 to test it. It would also be wise to consider where to place a stop loss; this should be set below the second support of 0.6813.
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USD/JPY analysis for December 12, 2017

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Recently, the USD/JPY pair has been trading sideways at the price of 113.45. Anyway, according to the 30M time – frame, I found a hidden bullish divergence on the stochastic oscillator, which is a sign that selling looks risky. The short - term trend is bullish. My advice is to watch for a potential breakout of 113.50 to confirm a further upward movement. The upward targets are set at the price of 113.74 (pivot resistance 1) and at the price of 113.94 (pivot resistance 2).

Resistance levels:

R1: 113.74

R2: 113.95

R3: 114.20

Support levels:

S1: 113.29

S2: 113.05

S3: 112.85

Trading recommendations for today: watch for potential buying opportunities.

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Technical analysis of USD/CHF for December 12, 2017

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Overview:

  • The USD/CHF pair continues to move upwards from the level of 0.9806. Last week, the pair rose from the level of 0.9806 to the top around the area of 0.9921 (pivot). Today, the first resistance level is seen at 0.9972 followed by 1.0037, while daily support 1 is seen at 0.9886. According to the previous events, the USD/CHF pair is still moving between the levels of 0.9886 and 1.0037; for that, we expect a range of 150 pips. If the USD/CHF pair fails to break through the support level of 0.9886, the market will rise further to 0.9972. This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to climb higher towards at least 1.0037 with a view to testing the double top. On the other hand, if a breakout takes place at the support level of 0.9800, then this scenario may become invalidated.

Trading recommandations:

  • The major support is seen at the price of 0.9806. So, it will be very useful to buy above the spot of 0.9806 with the targets of 0.9921 and 1.0037.
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EUR/USD analysis for December 12, 2017

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Recently, the EUR/USD pair has been trading sideways at the price of 1.1777. Anyway, according to the 15M time - frame, I found a broken upward channel in the background, which is a sign that buying looks risky. I also found a bearish momentum on the MACD oscillator, which is another sign of weakness. The short-term trend is bearish. My advice is to watch for potential selling opportunities. The downward target is set at the price of 1.1730.

Resistance levels:

R1: 1.1800

R2: 1.1830

R3: 1.1845

Support levels:

S1: 1.1750

S2: 1.1733

S3: 1.1700

Trading recommendations for today: watch for potential selling opportunities.

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Intraday technical levels and trading recommendations for EUR/USD for December 12, 2017

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Monthly Outlook

In January 2015, the EUR/USD pair moved below the major demand levels near 1.2050-1.2100 (multiple previous bottoms set in July 2012 and June 2010). Hence, a long-term bearish target was projected toward 0.9450.

In March 2015, EUR/USD bears challenged the monthly demand level around 1.0500, which had been previously reached in August 1997.

In the longer term, the level of 0.9450 remains a projected target if any monthly candlestick achieves bearish closure below the depicted monthly demand level of 1.0500.

However, the EUR/USD pair has been trapped within the depicted consolidation range (1.0500-1.1450) until the current bullish breakout was executed above 1.1450.

The current bullish breakout above 1.1450 allowed a quick bullish advance towards 1.2100 where recent evidence of bearish rejection was expressed (Note the previous Monthly candlestick of September).

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Daily Outlook

In January 2017, the previous downtrend was reversed when the Inverted Head and Shoulders pattern was established around 1.0500. Since then, evident bullish momentum has been expressed on the chart.

As anticipated, the ongoing bullish momentum allowed the EUR/USD pair to pursue further bullish advance towards 1.1415-1.1520 (Previous Daily Supply-Zone).

The daily supply zone failed to pause the ongoing bullish momentum. Instead, evident bullish breakout was expressed towards the price level of 1.2100 where the depicted Head and Shoulders reversal pattern was expressed.

If the recent bearish breakout persists below 1.1700 (Neckline of the reversal pattern), a quick bearish decline should be expected towards the price zone of 1.1415-1.1520 (Initial targets for the depicted H&S pattern).

Bearish target for the depicted Head and Shoulders pattern extends towards 1.1350. However, to pursue towards the mentioned target level, significant bearish pressure is needed to be applied against the mentioned zone (1.1415-1.1520).

However, In November, recent price action around the price zone of 1.1520-1.1415 indicated evident bullish recovery. This hindered further bearish decline which allowed the current bullish pullback to occur towards the price level of 1.1900.

Trade Recommendations

The price levels around 1.1900-1.1950 were suggested for a valid short-term SELL entry. It's already running in profits.

S/L should be lowered to 1.1870 to secure some of the profits. Remaining T/P levels to be located at 1.1700 and 1.1590.

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NZD/USD Intraday technical levels and trading recommendations for December 12, 2017

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Daily Outlook

A recent bullish breakout above the downtrend line took place on May 22. Since then, the market has been bullish as depicted on the chart.

This resulted in a quick bullish advance towards next price zones around 0.7150-0.7230 (Key-Zone) and 0.7310-0.7380 which was temporarily breached to the upside.

Recent bearish pullback was executed towards the price zone of 0.7310-0.7380 (newly-established demand-zone) which failed to offer enough bullish support for the NZD/USD pair.

Re-consolidation below the price level of 0.7300 enhanced the bearish side of the market. This brought the NZD/USD pair again towards 0.7230-0.7150 (Key-Zone) which failed to pause the ongoing bearish momentum.

An atypical Head and Shoulders pattern was expressed on the depicted chart which initiated bearish reversal.

As expected, the price level of 0.7050 failed to offer enough bullish support for the NZD/USD pair. That's why, further bearish decline was expected towards 0.6800 (Reversal pattern bearish target).

Evident signs of bullish recovery was expressed around the recent low (0.6780). That's why, a bullish pullback is expected towards 0.7050.

Trade Recommendations:

An inverted Head and Shoulders pattern is being established on the chart indicating high probability of bullish reversal.

That's why, the price zone of 0.6800-0.6830 can be considered for a short-term BUY entry. S/L should be placed below 0.6770. T/P level remains projected towards 0.7050.

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Bitcoin analysis for 12/12/2017

There are many stories about lost and long-lost Bitcoins that are worth a fortune today. The Bulgarian government may just be holding bitcoins seized a few months earlier, worth as much as about 18% of the country's debt. It is about Bitcoins confiscated in May this year by a criminal group operating in the Balkans. Criminals dealt with the installation of Trojans on government computer services.The tactics of criminals consisted in recruiting corrupt customs officials in Greece, Serbia, Macedonia, Romania and Bulgaria in order to infect customs information systems. After installing the virus, criminals were able to manage cargo and cleans information. In total, 23 people were detained, 5 of them were Bulgarian customs officers. The police intercepted communication devices, computers, tablets and bank documents. On one of the computers, there were ... 213,519 Bitcoins. Today, when the exchange rate is around $ 15,000, the value of requisitioned Bitcoins is well over $3 billion. The whole situation resembles that of Silk Road, where the services have seized 144,000BTC. Bitcoins have been sold on several auctions.

Whether the Bulgarian government will decide to sell Bitcoins is not known. At the moment, there are no plans for a seized cryptocurrency yet. Any possible sale will not be easy even for legal reasons.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. A new all-time high has been made at the level of $17,216 but there is still a potential for another high in wave (3) as the current internal wave progression looks incomplete. The nearest support is seen at the level of $15,950. The trend is still up and there are no signs of a trend reversal.

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Trading plan for 12/12/2017

Tuesday's trade in FX is calm and investors have reduced their activity, waiting for more interesting events of the second part of the week. The main markets are moving sideways. EUR / USD drifts at 1.1770, USD / JPY remains close to 113.50, and GBP / USD fluctuates at 1.3340.The NZD remains the leader, pulling AUD with it. The equity market is correcting Monday's rises. Crude oil sustains rally caused by information on disruptions in production.

On Tuesday 12th of December, the event calendar is quite busy with various economic data releases. During the London session, France will publish data, the UK will present Consumer Price Index data and Germany will post ZEW Economic Sentiment data. During the US session, the US will post PPI index data and Federal Budget Balance data. ECB Chair Mario Draghi speech is scheduled at 07:00 pm GMT.

GBP/USD analysis for 12/12/2017:

The beginning of the week on the FX market was not spectacular. The news from New York contributed to the temporary outflow of capital towards safe havens, after an attack with an improvised bomb was confirmed. At the head of the G10 currency basket, the New Zealand dollar is still in the lead as the choice of Adrian Orr for the Governor of the RBNZ next term makes NZD/USD rally 1.1%.

Consumer inflation in the United Kingdom is to remain at 3.0%, but since the Bank of England is just after the interest rate hike, the data at this stage are not a significant point of appreciation. At present, the political turmoil around Brexit plays a more important role in the predominance of threats and opportunities, so it seems more reasonable to extinguish the possible strength of the Pound after the data.

Let's now take a look at the GBP/USD technical picture at the H4 time frame. The market dropped to the technical support level at 1.3338 and broke below the lower channel line. This is the key level of support for bulls, so if violated, then the price might accelerate the sell-off towards the level of 1.3279 and 1.3211. The momentum indicator is below its fifty level, which supports the bearish bias.

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Market Snapshot: Crude Oil bounces heavily

The price of Crude Oil bounced from the level of 55.65 after the news, that the largest British pipeline transporting Crude Oil from the bottom of the North Sea can be shut down for several weeks due to an uncovered leakage. Currently, the price is trading close to the short-term trend line resistance around the level of 58.70, but it looks like the target is the recent high at the level of 59.04. Strong bullish momentum supports the bias.

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Market Snapshot: EUR/GBP tests the trend line resistance

The price of EUR/GBP has bounced from the level of 0.8688 to test the long-term trend line resistance around the level of 0.8830. This is the key resistance zone, because the supply zone between the levels of 0.8840 - 0.8868 is close and all the moving averages are close as well. It will be a tough area to violate, which is why the outlook remains bearish.

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Ichimoku cloud indicator analysis of USDX for December 12, 2017

The Dollar index is in a pullback phase towards 93.40. I expect the pullback that started on Friday to continue today and tomorrow towards 93.40. Price bounced yesterday but so far we have a lower high.

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Black rectangle - target area

Red rectangle - short-term support

Black lines - wedge pattern

The Dollar index is trading above the Ichimoku cloud. Trend is bullish. Support is at 93.70. Breaking this level will push price towards our short-term target and Ichimoku cloud support at 93.30-93.40. Resistance is at 94.15.

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The Dollar index has bounced off the 61.8% Fibonacci retracement. On a weekly basis, we have made an important low at 92.50 as expected and we have started the next leg up towards 96-97. We might see a short-term pullback towards 93.30 but I believe we are heading higher over the coming weeks. A rejection at 94 will be a bearish sign. Key support at 92.50. Break it and we are off to new lows below 91.

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Ichimoku cloud indicator analysis of gold for December 12, 2017

Gold price made a new low yesterday at $1,241. Price remains in a bearish trend. I continue to expect prices to bounce towards $1,255-60 area before any meaningful downside move towards $1,220-$1,200.

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Red lines - bearish channel

Black lines - bullish divergence

We observe bullish divergence signs in the 4 hour chart. Price has resistance the $1,247 level and support at $1,220. A break above resistance will confirm my short term bounce view towards cloud resistance $1,260-70.

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On a weekly basis price has entered the weekly Kumo (cloud). This is not good for long-term bulls. Price at the end of the week must at least gives a bounce off this weekly support area, otherwise bulls will be in trouble. Last time price tested the weekly Kumo (cloud), price reached the lower cloud boundary and rallied 130$ to $1,350. Let's see what it does this time.The material has been provided by InstaForex Company - www.instaforex.com

Fundamental Analysis of GBP/USD for December 12, 2017

GBP/USD is currently quite bearish in nature having strong rejection of the bulls yesterday by bouncing off the weekend gap created in the market.

This week, both central banks in the UK and the US are holding policy meetings. The US Fed is widely expected to increase its funds rate to 1.50% from the previous value of 1.25%.

Next day, the Bnak of England is going to announce its policy decision, so the key interest rate is expected to remain unchanged at 0.50%. By the end of this week, a good amount of volatility is expected along with a directional bias of the market. This should be analized to track the upcoming direction in this pair. Today, the UK CPI report is going to be published which is expected to be unchanged at 3.0%, PPI Input report is expected to increase to 1.6% from the previous value of 1.0%, RPI report is expected to show a slight increase to 4.1% from the previous value of 4.0%, Core CPI is expected to be unchanged at 2.7%, HPI report is expected to decrease to 5.2% from the previous value of 5.4%, and PPI Output is expected to be unchanged at 0.2%. On the USD side, today the US PPI report is going to be published which is expected to be unchanged at 0.4%, Core PPI report is expected to decrease to 0.2% from the previous value of 0.4%, and NFIB Small Business Index report is expected to increase to 104.6 from the previous figure of 103.8. As for the current scenario, the pair is already quite volatile but with the upcoming high impact economic events and reports, the pair is expected to get a directional bias which is most likely to be on the USD side, taking the price much lower in the coming days.

Now let us look at the technical chart. The price is currently showing some bearish pressure off the dynamic level of 20 EMA above the support area of 1.33. The price is expected to break below 1.33 to reach the lower support area of 1.31 area in the coming days. The rate rike decision on Wednesday opens doors for the USD to gain more momentum. As the price remains below 1.35, the bearish bias is expected to continue further.

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Burning Forecast 12/12/2017

Burning Forecast 12/12/2017

EURUSD: buy on the breakthrough of 1.1815.

The situation on the foreign exchange market is uncertain - two important events ahead are the decisions on monetary policy of two major central banks: the decision of the Fed on December 13 and the decision of the ECB on December 14.

The sluggish trade on Monday confirmed the key levels for further movement on the euro: the level of 1.1815 upwards and the level of 1.1728 downwards.

We, in the aggregate of fundamental and technical factors, consider it more likely to move upwards.

Buy at the break of a level of 1.1815 upwards, stop-loss at 1.1770, targets - 1.1940 and further towards 1.2080.

An alternative scenario is possible - a breakthrough downwards at 1.1728 in this case.

Sell for a breakdown of 1.1728, stop-loss at 1.1773, target of 1.1628.

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Fundamental Analysis of USD/JPY for December 12, 2017

USD/JPY has been impulsive and non-volatile with the bullish gains after bouncing off the support area of 110.80 to 111.70. JPY has been quite positive with the recent economic reports that helped the currency to gain some momentum and halt the impulsive gains of USD along the way. On the other hand, high impact economic reports from the US are going to be published this week which includes Federal Funds Rate report which will announce the rate increase to 1.50% from the previous value of 1.25%. Today, Japan's PPI report was published with an increase to 3.5% from the previous value of 3.4% which was expected to decrease to 3.3% and Tertiary Industry Activity report was published with an increase to 0.3% from the previous negative value of -0.2% which was expected to be at 0.2%. As the readings were better than expected, JPY gained good momentum against USD today which is expected to pause the bullish move with certain consolidation before the Rate Hike. On the USD side, NFIB Small Business Index report is due later today which is expected to increase to 104.6 from the previous figure of 103.8, PPI is expected to be unchanged at 0.4%, and Core PPI is expected to decrease to 0.2% from the previous value of 0.4%. To sum up, JPY is currently quite strong in light of Japan's economic reports that provided JPY with some support today and may lead to some consolidation before the Fed's rate hike when USD is expected to shoot up higher towards 116.50 in the future.

Now let us look at the technical chart. The price is currently showing some bearish pressure in the impulsive bullish trend. The price is currently expected to correct itself a bit which might fall towards the dynamic level of 20 EMA or 113.00 support area before launching up higher towards 116.50 after the rate hike decision on Wednesday. As the price remains above 113.00, the impulsive bullish bias is expected to continue further.

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Pound fled from politics

A busy economic calendar and the departure of political risks into obscurity allows us to hope for the return of investors in actively trading the pound. Semiannual negotiations between London and Brussels, judging by the statements of the latter, were completed successfully, which makes it necessary to shift attention to macroeconomic data. In general, there is plenty of data at the beginning of the second week of the month for the UK. Inflation, the labor market, retail sales and the meeting of the Bank of England will satisfy even the highest demands of trade analysts on the news.

The fall of sterling in response to positive news from the negotiation table on Brexit has become a classic example of the implementation of the principle of "buy on the rumor, sell on the facts." Traders sold the GBP/USD quotes on the factor of harmonizing the conditions of the divorce between Britain and the EU, and the message that the round-the-clock work was over and the issue of the Irish border was resolved. This launched a wave of selling against the backdrop of profit taking. Moreover, popular media referring to competent sources reported that the trade deal before the spring of 2018 will not be achieved. However, the bridgehead is laid, and the bulls on sterling, including Nomura and ING, believe that the reduction of political risks of the UK will push the GBP/USD pair in the direction of 1.4 in 2018 and 1.36 in the near future.

On the contrary, "bears" criticize the agreement that was reached, blaming it for lack of details, and referred to the futures market, where the value of options to sell sterling is higher than the purchase. Derivatives are used for risk insurance, and the current dynamics of an indicator such as the risk of reversal (the ratio of premiums on call and put), indicates that investors still fear the sterling's collapse.

Dynamics of the ratio of premiums on options

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Source: Bloomberg.

On the other hand, speculators in the futures market held a net long position on the pound for 6 of the last 10 weeks, although before that they acted as net sellers for 98 five-day consecutive days.

Lately, there have been too many news with political coloring, and it's time for the sterling to turn its focus on the economy. In general, the outlook for upcoming releases is moderately positive. Bloomberg experts do not expect inflation to exceed the critical level of 3%, while the acceleration of average wages from 2.2% to 2.5% y/y. In addition to that, the exit from the negative territory of retail sales inspires optimism for bulls in the GBP/USD pair. Moreover, it is beneficial for the Bank of England to maintain a strong pound with the help of "hawkish" rhetoric, and the dollar cannot take advantage of strong data on the US.

It is possible that the growth of the fiscal deficit as a result of the implementation of the tax reform, the reluctance of Donald Trump to see the US currency strong and the recovery of the economies of the competing countries will force the USD index to restore the downward trend in 2018.

Technically, the GBP/USD pair is preparing to retest the upper bound of the previous consolidation range at 1.304-1.332. Assuming that it, like the previous one, ends with the defeat of the "bears", the likelihood of a restoration of the uptrend in the sterling will then increase.

GBP/USD, daily chart

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Daily analysis of major pairs for December 11, 2017

EUR/USD: Throughout last week, the EUR/USD pair went downwards by 120 pips, thus leading to a Bearish Confirmation Pattern in the market. While the support levels at 1.1750 and 1.1700 could be tested, it is also expected that a rally will occur sometime this week, owing to a bearish run on the USD/CHF pair.

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USD/CHF: Throughout last week, the USD/CHF pair went upwards by 160 pips, thus leading to a Bullish Confirmation Pattern in the market. While the resistance levels at 0.9950 and 1.0000 could be tested, it is expected that the pair would end up plummeting this week, because CHF would showcase an extraordinary level of stamina. Other currencies would also drop versus CHF.

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GBP/USD: The bullish bias on the GBP/USD pair is not currently strong, because there were some subtle bearish attacks on the market last week. For the bullish bias to become strong, price would need to overcome the distribution territory at 1.3550. A movement below the accumulation territory at 1.3250 would result in a bearish outlook.

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USD/JPY: This currency trading instrument went downwards on Monday and Tuesday, and then went upwards on Thursday and Friday. There is a bullish bias on the market, and the supply level at 113.50 is expected to be reached – even if there is going to be any major pullback at last.

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EUR/JPY: This is a choppy, directionless market (both in the longer-term and the shorter-term), and it is prudent to stay away from the market until there is a break above the supply zone at 134.50; or until there is a break below the demand zone at 131.50. This would require a big momentum, and would happen in less than 14 days to this time.

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