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Sunday, May 11, 2014

Daily analysis of major pairs for May 12, 2014

 From a low of 0.8702, the USD/CHF shot upwards significantly. The pair trended upwards by over 160 pips within 2 days. This is the strongest upward move since early April 2014.

EUR/USD: As a result of exponential weakness in the Euro, this currency trading instrument has formed a Bearish Confirmation Pattern and the price is supposed to continue to nosedive this week. This is true of all other EUR pairs. From a high of 1.3993, the price dropped by over 240 pips. This could be a beginning of another long-term downtrend: the price could reach the support line at 1.3700 this week.


USD/CHF: From a low of 0.8702, the USD/CHF shot upwards significantly. The pair trended upwards by over 160 pips within 2 days. This is the strongest upward move since early April 2014. Needless to say, the established bias is now bullish and it is expected to continue this week. Our targets are set at the resistance levels of 0.8900 and 0.8950. In the course of this, the support level at 0.8800 ought to act as a barrier to possible pullbacks along the way.

GBP/USD:  This pair has also dropped in a serious mode. This is possible because of the perceived strength in the USD. The accumulation territory at 1.6850 has been challenged and the price needs to go below that territory in order for the bearish bias to get confirmed.

USD/JPY:  On Friday, there was no significant movement in this market. The outlook remains bearish, but the price needs to breach the demand level at 101.50 to the downside, so that the bias can continue to be valid.

EUR/JPY:  The price action on this currency trading instrument has resulted in an established bearish outlook. The price could reach the demand zone at 139.00 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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