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Major FX Pairs Outlook: EURUSD; USDCHF; GBPUSD; EURJPY

Published 03/20/2017, 08:21 AM
Updated 05/14/2017, 06:45 AM
EUR/USD
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GBP/USD
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USD/JPY
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USD/CHF
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EUR/JPY
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EURUSD

Monday and Tuesday registered a down move which tested the support line at 1.0600 before a 180 pips rally that briefly reached and surpassed the resistance line at 1.0750 before closing below it on Friday. Price can be expected to climb, possibly testing again the resistance line at 1.0750, however the resumption of the bearish impulse is a scenario to keep in serious consideration.

USDCHF

Price consolidated from Monday to Wednesday before falling to shape a bearish confirmation pattern and test the support level at 0.9950. If EUR/USD rises then this pair will find it very difficult to do likewise. However, if EUR/USD shows signs of weakness, then we can expect a serious rally that may occur within the next two weeks.

GBPUSD

After struggling at the demand zone around the 1.2150 level, a weak USD gave rise to a rally of 250 pips which tested the distribution area at 1.2400. A bullish outlook stands as long as USD remains weak enough for further rallies, but if USD strengthens then price is likely to fall.

USDJPY

Price consolidated from March 13 - 15, but USD weakness began a drop of almost 250 pips between the resistance level 115.00 and the support level 112.50 that resulted in a bearish outlook. Further decline is possible this week, but a rally should be expected in the next week or two.

EURJPY

Last week registered a drop of 150 pips, in contrast with the recent bullish bias and resulting in a short-term neutral bias. After closing around the support at 121.00 on Friday, price may proceed towards the demand zones at 120.50 and 120.00, but the outlook on JPY pairs is bullish so there could be a rally before the end of this month.

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