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Monday, March 17, 2014

Daily analysis of major pairs for March 17, 2014

Since the USD/JPY is extremely bearish, we are looking forward to selling rallies on it this week.

EUR/USD: The bias on this pair is bullish, and the price is expected to trend higher this week. The possibility of pullbacks cannot be ruled out, but the threats should be contained at the support lines of 1.3850 and 1.3800 respectively. Meanwhile the resistance line at 1.4000 is a valid target for this week.


USD/CHF: This is a bear market, although it is slow and tardy in manner. The support level at 0.8700 has been tested and it is should be easily re-tested, and breached to the downside. After this, the price would then go further downwards towards the support level at 0.8650 – which is our target for this week.

GBP/USD:  The Cable, which is a kind of a trendless market, remains difficult for swing traders to handle. Only intraday strategies are recommended here. One may buy at the distribution territory of 1.6700 and sell at the accumulation territory of 1.6600; for as long as the trendless phase holds out. Eventually, there is going to be a serious breakout which leads to a clear directional bias. When this happens, it is more likely to be towards the downside, for there is a bearish indication in the chart at the present. 

USD/JPY:  Since the USD/JPY is extremely bearish, we are looking forward to selling rallies on it this week. Yes, in the face of the current Bearish Confirmation Pattern in the chart, the only sensible thing is to seek a short trade when the price rallies in a downtrend. The price may reach the demand level at 100.50 this week.

EUR/JPY: The EUR may not be as weak as the USD, but the stamina in the Yen is more than what the currency could withstand. This cross dropped throughout last week and the bearish scenario on it has been confirmed. We are bearish for this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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

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