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Sunday, October 12, 2014

Daily analysis of major pairs for October 13, 2014

In spite of the bullish attempt that happened on it last week, the Cable is still in a bearish mode. The price is now below the distribution territory at 1.6100, going towards the accumulation territory at 1.6000. The price might touch the accumulation territory before there could be a potential upwards bounce in the market.

EUR/USD:  On this pair, the bulls made genuine attempts to drive the market northwards, but they were eventually overpowered by the bears. On Friday, October 10, 2014, the price closed at 1.2628; on a bearish note. There is a possibility that the price may even test the support line at 1.2550.



USD/CHF: What can happen on the USD/CHF is simply a negatively correlated movement when compared to the EURUSD. In spite of the pullback that occurred in the market, the price was able to shrug off the bearish pulls, closing on a bullish note. There is still a Bullish Confirmation Pattern in the chart, which could see the price testing the resistance level at 0.9700. This resistance level is one of the ultimate levels targeted by the bulls.

GBP/USD:  In spite of the bullish attempt that happened on it last week, the Cable is still in a bearish mode. The price is now below the distribution territory at 1.6100, going towards the accumulation territory at 1.6000. The price might touch the accumulation territory before there could be a potential upwards bounce in the market.

USD/JPY:   The Bearish Confirmation Pattern on the USD/JPY is still intact.  The price is now trading below the supply level at 108.00, going towards the demand level at 107.00. That is the next target for the bears, and the target could be reached before the price turns upwards.

EUR/JPY:  This is a bear market which could be threatened by a sudden weakness in the Yen. The market could continue going south as long as the Yen is strong, but should the Yen show any sign of weakness, there could be a rally in the market.  

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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