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Sunday, January 12, 2014

Daily analysis of major pairs for January 13, 2014


The EUR/JPY has shown its inability to trade higher than the supply zone at 143.00, in spite of testing it several times last week. Should the price then fall below the demand zone at 142.00, it could mean the beginning of a new bearish trend.

EUR/USD:  After moving sideways for most of last week, this pair was able to break out upwards, thus rendering the recent bearish bias almost invalid. The bearish bias is not yet completely invalid. What would make it invalid is a situation in which the pair trades above the resistance line at 1.3700, which would have led to a clean bullish bias by then.


USD/CHF:  After moving sideways for most of last week, this pair was able to break out downwards, thus rendering the recent bullish bias almost invalid. The bullish bias is not yet completely invalid. What would make it invalid is a situation in which the pair trades below the support level at 0.9000, which would have led to a clean bearish bias by then.

GBP/USD:  Interestingly the Cable and the EUR/USD seem to be going into a positive correlation with each other. This means that both are making attempts to go northward. The Bullish Confirmation Pattern on the Cable has been existing since last week. The price should be able to close above the distribution territory at 1.6500 this week.

USD/JPY: This currency trading instrument closed at 104.15 on Friday, after forming another bearish signal. I think it is better to begin to look for ways to sell rallies in this market, for the recent bullish signals on it have been showing signs of failure. The price has not been able to trade above the supply level of 105.50.

EUR/JPY: The EUR/JPY has shown its inability to trade higher than the supply zone at 143.00, in spite of testing it several times last week. Should the price then fall below the demand zone at 142.00, it could mean the beginning of a new bearish trend. This view is supported by the Bearish Confirmation Pattern in the chart.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Eye-opening trading lessons: http://www.harriman-house.com/experttraders


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