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Sunday, July 13, 2014

Daily analysis of major pairs for July 14, 2014

The USD/JPY is still in a bearish mode, although the price is making some rally attempts. The rally may be contained at the supply level of 101.50. This is an area from which the price may go further downwards.

EUR/USD:  The bias on this market is bearish and the price is expected to go further downwards. On Friday, July 11, 2014, the price closed at 1.3606: it would easily test the support line at 1.3600 this week. This week may see the price going below that support line.


USD/CHF: Unless one is a scalper or a day trader, this market is not currently attractive. It seems the bulls and the bears have equal strength (no-one is stronger than the other). The market would need to break either above the resistance level at 0.8950 or below the support level at 0.8900. After this, one would know the direction to take. If the resistance level is breached, one would seek long trades. Reverse the logic for a scenario in which the support level is breached.

GBP/USD:  This market is also a bull market, in spite of the consolidation on it. The consolidation is simply a pause in the market, after which the bullish journey would resume. The price is expected to test the distribution territory at 1.7200 this week.

USD/JPY:  The USD/JPY is still in a bearish mode, although the price is making some rally attempts. The rally may be contained at the supply level of 101.50. This is an area from which the price may go further downwards. When this happens, the price may touch the demand level at 101.00.

EUR/JPY:  The Bearish Confirmation Pattern in the chart adds to the possibility that this cross would be going further downwards. The demand zone at 137.50 was tested and it could be tested again. The supply zone at 138.00 could also contain any possible rally along the way.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group




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