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Sunday, May 25, 2014

Daily analysis of major pairs for May 26, 2014

The situation on the USD/CHF is now getting interesting. After a long period of siege and repeated bullish attacks, the price managed to close above the support level of 0.8950. For the bullish victory to continue, the price needs to move towards the resistance level at 0.9000.

EUR/USD:  After much determined effort on the side of the bears, the resistance line at 1.3650 was breached to the downside. It was not an easy task, for the price had been making that attempt since the middle of this month. It is now intriguing to see what the price would do next. According to the established bias, the price might continue trading downwards, going towards another support line at 1.3600.



USD/CHF: The situation on the USD/CHF is now getting interesting. After a long period of siege and repeated bullish attacks, the price managed to close above the support level of 0.8950. For the bullish victory to continue, the price needs to move towards the resistance level at 0.9000.  This week would thus see whether this target would be realized or not. Yes, the situation is interesting!

GBP/USD:  This market appears to be unable to sustain the recent bullish indication on it. From the distribution territory at 1.6900, the market nosedived and closed below the distribution territory at 1.6850. A test of the accumulation territory at 1.6800 would mean the end of the bullish indication; which means short trades may then be sought.

USD/JPY:  There is now a Bullish Confirmation Pattern on this pair, as it moves determinedly upwards. The price ought to easily breach the supply level at 102.00 to the upside, as it goes towards another supply level at 102.50.

EUR/JPY:  The southward outlook on this market remains valid, in spite of the current shallow rally in the market. The rally is currently being challenged at the supply zone of 139.00 – a zone from which price could nosedive.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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