Adsense

Sunday, June 1, 2014

Daily analysis of major pairs for June 2, 2014

There is a temporary pullback on the USD/CHF, which ought not to take the price below the support level at 0.8900, so that the bullish bias can remain valid. The price may go further upwards after the pullback has ended.  

EUR/USD:  The bearish bias on this pair is still present, although there is a shallow rally in the market. The rally in the context of a downtrend is not supposed to take the price above the resistance line at 1.3700 – a point at which it would be clear that the bearish bias is no longer valid and it would be logical to seek short trades.


USD/CHF: There is a temporary pullback on the USD/CHF, which ought not to take the price below the support level at 0.8900, so that the bullish bias can remain valid. The price may go further upwards after the pullback has ended.  On the other hand, a movement below the aforementioned support level would render the bullish outlook invalid.

GBP/USD:  On the Cable, there is now a serious rally in the context of a downtrend. From the accumulation territory at 1.6700, the price rallied and closed above the accumulation territory at 1.6750. Further rally should be contained at the distribution territories at 1.6800 and 1.6850. Otherwise, the long-term bearish bias would be in jeopardy.

USD/JPY: This market is a classical example in which false breakouts are no longer a curiosity. In addition, sustained trending moves are rather rare.  It would be OK to stay away from the market unless there is a protracted directional move.

EUR/JPY:  This market, which bounced upwards after testing the demand zone at 138.00, would have the upward bounce contained at the supply levels at 139.00 and 139.50. Further southward movement is expected from here.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Learn from the Generals of the Markets:
http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314

No comments:

Post a Comment