EURUSD remains in a tight trading range between 1.2350 and 1.2550. In our previous post I mentioned that the downward move is not over and I favor the bearish side as long as price is below 1.26. The long-term trend line resistance remains intact at 1.2550 and the Ichimoku cloud is also above current price confirming that trend remains bearish. A short-term tighter trading range is also in force between 1.24 and 1.25. A break of either level will increase the chances of a break out of the bigger trading range and a move either towards 1.30 or towards 1.22-1.20.
USDJPY and USDCHF are both in the brink of breaking above double top formations with very good short-term bullish potential towards 120 for USDJPY and 0.98-0.99 for USDCHF.
USDJPY has bounced off the Ichimoku cloud and as long as it trades above 118 bulls are in control. The short-term resistance is at 119 and this is the double top level where the previous two times we saw a price reversal and rejection. This is the 3rd time and if we break it(most probable) we will see a burst higher towards 120 as many traders use 119 as a stop level.
Similar bullish pattern is seen at USDCHF. This pair remains above the short-term rising black trend line and has held above the Ichimoku support. Critical support level is found at 0.96 while important resistance is found at 0.97 and at 0.9740. Breaking above this level will be a bullish signal with 0.99-1.00 as very possible targets.
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