Monday has come and new week in financial markets has begun. As I am more interested in Forex market than in any other market I want to look a little at some of my favorite Forex pairs and share my expectations with you regarding them. Firstly, I want to say that I expect Euro and Pound corrections this week and a rebound in Japanese Yen.
eur/usd analysis: the pair seems to be in an asymmetrical triangle at the moment. It is now staying above most recent breakout level of 1.3250 and tries to get to 1.3500 level. It looks like it is going to visit 1.3150 before going upwards.
gbp/usd analysis: Pound has been very weak for a week. I expect the weakness to disappear this week. gbp/usd is now at a very important support level and I bet it is going to hold. I have intentions of buying the pair near its current support when I see clear signs of reversal. They could be bullish candles or 123 reversal pattern.
gbp/jpy analysis: We could be in the process of a big asymmetrical triangle formation in the pair. For that to come true gbp/jpy has to visit 140.50 level. That would be the second point for a lower triangle side. Then a push upwards is expected. However, looking at longer term charts one could see that support is constantly bombarded. We see less and less upwards action and more and more sideways action. Expect lower prices soon.
eur/jpy analysis: Euro has been making lower highs and lower lows on 1 hour chart. From my perspective eur/jpy should see 118.65 level sooner rather than later. Selling daily highs seems the best way to trade the pair for now.
eur/gbp analysis: The pair is clearly headed to 0.8500 area. That will probably be the last point. The pair will collapse like a rock from there in the same fashion as it has been climbing.
See also: Japanese Yen outlook