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Sunday, July 20, 2014

Daily analysis of major pairs for July 21, 2014

The USD/CHF made an effort to test the great resistance level at 0.9000, and the price got retraced after this was done. The market tested that resistance level several weeks ago, but it was unable to break it to the upside.  There is now a need to break the resistance level to the upside, so that the bullish journey might continue.

EUR/USD:  This pair is now very bearish: the price tested the support line at 1.3500 last week and the price bounced upwards temporarily after that. There is a resistance line at 1.3550 (plus another one at 1.3600). These resistance lines ought to act as a great impediment to any rallies that may jeopardize the bearish effort this week. It is possible that the price tests the support line at 1.3500 again and possibly break it to the downside.


USD/CHF: The USD/CHF made an effort to test the great resistance level at 0.9000, and the price got retraced after this was done. The market tested that resistance level several weeks ago, but it was unable to break it to the upside.  There is now a need to break the resistance level to the upside, so that the bullish journey might continue. Should the price fail to do this, things may turn bearish.

GBP/USD:  The inability of the Cable to continue its upward journey has resulted in a serious threat to the recent bullish bias. In fact, short trades have begun to make more sense than long trades in this market and the break of the accumulation territory at 1.7050 would mean that it is completely irrational to seek long trades.

USD/JPY:  This market moved downwards and later got some bullish correction on Friday, July 18, 2014. The price closed at 101.33 – it could go further downwards because there is a Bearish Confirmation Pattern in the chart.

EUR/JPY:  This cross dropped by over 160 pips last week, before it began to experience shallow bullish correction. The price is expected to go again below the supply zone at 137.00. Meanwhile, the supply zone at 137.50 is a barrier to further bullish correction.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group





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