EUR/USD
EUR/USD managed to contain a bullish signal last week, moving inside short-term consolidation. Price reached the resistance level at 1.0800 and moved sideways untill Friday. There were many failed attempts to breach the resistance but price could not decisively close above it. This week the opening gap up brought the pair to an immediate test of the supply area around the resistance level 1.0850. A possibility of weakness remains in the market, unless USD continues to show weakness versus EUR.
After marking a 70 pip drop last week, which tested the support level at 0.9900, this morning the pair breached the level. Considering that price fell below the psychological level at 1.0000, it will be difficult for it to go above that level again. There are potential targets at the support levels of 0.9800 and 0.9750 this week, which could be reached as long as this pair continues to show weakness.
After reaching the distribution area around the level 1.2500 the pair consolidated until the end of the week. A bullish confirmation pattern remains in the market, as the outlook on GBP pairs continues to be bullish, with further upward movement to be expected this week. This pair has space to climb by at least 150 pips, testing the supply zone around the levels 1.2550, 1.2600 and 1.2650.
The 160 pip drop last week (more than 400 since March 10) led to a strong bearish outlook on the pair. The support level at 111.00 was tested several times last week, but price managed to close above it. This week, the break-out at the opening of the Asian session suggests that further down movement can be expected. However, there is an indication of possible rallies on JPY pairs before the end of the month, which could also affect this pair.
Last week registered a 180 pip drop (310 pips since March 13), which tested the accumulation area around 119.50. There is currently a short signal in the market, which may enable the demand zones at 119.00 and 118.50 to be reached, however there could be a transitory rally before the end of the month which is also expected on other JPY pairs.