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Sunday, February 16, 2014

Daily analysis of major pairs for February 17, 2014

The Cable was able to move more than 350 pips last week, closing at 1.6747. The target for this week is at the distribution territory of 1.6800, though there are possibilities of transitory pullbacks.

EUR/USD: This pair has been able to maintain its upward journey, moving close to the resistance area at 1.3700. For the northward journey to continue, the price would need to break the resistance area to the upside. The target for this week is at the resistance line of 1.3800.


USD/CHF:  This pair has been able to maintain its southward journey, moving close to the support level at 0.8900. For the southward journey to continue, the price would need to break the support level to the downside. The target for this week is at the support level of 0.8850.

GBP/USD:  The Cable was able to move more than 350 pips last week, closing at 1.6747. The target for this week is at the distribution territory of 1.6800, though there are possibilities of transitory pullbacks, because the RSI period 14 has moved into the overbought region. The Bullish Confirmation Pattern in the chart is extremely strong right now.

USD/JPY: The bearish signal in the market is still in place – the price is below the EMA 56 while the RSI period 14 is below the level 50. However, the ‘sell’ signal which comes as a result of the weakness in the Greenback, should be taken with tight targets, for it is not likely that the price would move below the demand level at 101.00.

EUR/JPY: This cross moved sideways throughout last week, but it was able to maintain its bullish outlook. Therefore it is more likely that when a breakout happens, it would be to the upside.

Performed by Azeez Mustapha,
Analytical expert

InstaForex Companies Group

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

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