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Sunday, May 18, 2014

Daily analysis of major pairs for May 19, 2014

  From the accumulation territory at 1.6750, the Cable has bounced upwards. The upward bounce should pause at the distribution territory of 1.6850, so that the present bearish outlook may continue to be valid.

EUR/USD:  The EURUSD trended gracefully to the downside last week. However, the graceful downward movement has been challenged at the support line of 1.3650. That support line needs to be breached to the downside, so that the bearish outlook may continue to be valid. We envisage the support line at 1.3600 as our target for this week.


USD/CHF: This pair moved gracefully to the upside last week. However, the graceful upward movement has been challenged at the resistance line of 0.8950. That resistance line needs to be breached to the upside, so that the bullish outlook may continue to be valid. We envisage the resistance line at 0.9000 as our target for this week.

GBP/USD:  From the accumulation territory at 1.6750, the Cable has bounced upwards. The upward bounce should be paused at the distribution territory of 1.6850, so that the present bearish outlook may continue to be valid. The price should reach the accumulation territory at 1.6700 this week. Any movement above the aforementioned distribution territory will put the bearish outlook in jeopardy.

USD/JPY:  The bias on this market has been bearish, but there is a stubborn barrier at the demand level of 101.50. Around this level, there has been a serious battle between the bull and the bear – as the bull is giving way with great reluctance. The price should go more southward, thus breaking the stubborn demand level at 101.50 to the downside.

EUR/JPY:  Here too, the demand zone at 139.00 has been battered mercilessly, since the bears are determined to push the price lower than that demand zone. Should they succeed in doing this, the next price target would be at the demand zone of 138.50.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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