Analysis to the Major Pairs
The analysis on the major pairs made yesterday, 20th June, can be seen on investing.com, here: http://www.investing.com/analysis/analysis-to-the-major-pairs-200137132. This post below is an update on that analysis.
Since yesterday, EURUSD went further down and closed the gap, after a rally attempt on low volumes, relative to the Tokyo’s session. I maintain my view that a test/low volume bars on this area, and on prices closer to the trendline, will provide an opportunity to go long.
This pair has been stalling on the breakout’s price, and showed supply in the form of an upthrust – it’s a bar making a higher high than the previous ones, shaking-out longs from the market. I doubt that selling will have a prolonged effect on the market however, and a correction of this extended move may still give an opportunity to go long.
Out of the 4 pairs, this is the one with the most interesting development in my opinion. The trendline is now being broken, but the volumes are very low, which show lack of demand. After such demand before, I would expect more buying for a true up movement to happen. If the volumes pick up on this area, or more VSA signals appear, I expect USDJPY to start a more significant up movement.
This pair is on the lower part of the congestion area. The last bar was a test – its low was close to the congestion’s lows, and yet, selling didn’t pick up; it closed on the highs, with a low volume. Just as I’m writing this post, the prices are struggling to rally after this supposedly strong indication, which shows there is no particular interest in an up move for now (we call it a failed test).