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Sunday, November 2, 2014

Daily analysis of major pairs for November 3, 2014

The USD/JPY closed at 112.35 on Friday, October 31, 2014. The pair closed on a bullish note, having trended upwards by around 440 pips last week. This is a very strong northward journey that could continue this week. However, the possibility of some transitory pullbacks cannot be ruled out.

EUR/USD:  This is a bear market, which means the direction of the price is southward and volatile. The support line at 1.2500 has been tested and it may be retested again. Should the price succeed in breaking that support line to the downside, the next target would be the support line at 1.2450.


USD/CHF: This currency trading instrument has gone in the opposite direction to the EUR/USD – as it normally does. The price climbed by 200 pips last week (that is, from the support level at 0.9450), closing above the support level at 0.9600. The next target to be breached to the upside is the resistance level at 0.9650. This resistance level was tested last week, and it could also be tested this week.

GBP/USD:  Since the GBP/USD is also normally correlated in a positive mode, when compared to the EUR/USD, it is no wonder that the price has gone seriously downwards. There is a lot of sideways movement and market activity above the accumulation territory at 1.5950 and that accumulation territory may be breached to the downside, especially when the Greenback gains more strength.

USD/JPY: The USD/JPY closed at 112.35 on Friday, October 31, 2014. The pair closed on a bullish note, having trended upwards by around 440 pips last week. This is a very strong northward journey that could continue this week. However, the possibility of some transitory pullbacks cannot be ruled out.

EUR/JPY:  Like all other JPY pairs, this cross also trended upwards last week. The Euro is weak somewhere else, but this pair is going upwards because the Yen is essentially weaker than the Euro. The price is now above the demand zone at 140.50, and it may reach the supply zone at 141.50 this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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