Sunday, February 9, 2014

Daily analysis of major pairs for February 10, 2014

There are new strong biases in the markets which are supposed to continue this week.

EUR/USD: The new lease of energy in the EUR has become strong enough to cause the pair to form a Bullish Confirmation Pattern in the chart. The target for this week is at the resistance line at 1.3700, and the price could even go beyond the target, provided that the buying pressure is strong enough.

USD/CHF:  As a result of the negative correlation principle affecting both the EUR/USD and the USD/CHF, this pair has gone bearish. The price is now trading below the resistance level at 0.9000, and it should trudge reluctantly towards the support levels at 0.8950 and 0.8900 respectively.

GBP/USD:  After testing the accumulation territory at 1.6250, the Cable bounced upwards by over 160 pips, closing at 1.6411. The buying pressure needs to take the price above the distribution territory at 1.6450 before it can be safely said that the recent bearish outlook is completely over.

USD/JPY: There are new strong biases in the markets which are supposed to continue this week. The price in this market has moved above the EMA 56 and the RSI period 14 has crossed the level 50 to the upside. It is thus expected that the price could easily test the supply level at 103.00 later.

EUR/JPY: By the time this cross tests the supply zone of 140.00, a bullish bias would have been confirmed in the chart. This means that the EMA 11 would have crossed the EMA 56 to the upside (the RSI period 14 is already above the level 50). Perhaps the price could also cross the supply zone at 141.00 to the upside.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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