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Sunday, November 16, 2014

Daily analysis of major pairs for November 17, 2014

The Cable dropped by roughly 300 pips last week, testing the accumulation territory at 1.5600. There is now a shallow upwards bounce from that territory, which should be short-lived as the Cable continues to be weak. Any movement above the distribution territory at 1.5800 would seriously threaten the bearish outlook.

EUR/USD: The outlook on this currency trading instrument remains bearish, but the existing price action is a threat to the bearish outlook. A movement above the resistance line at 1.2600 would mean that it is no longer logical to seek short trades. There is a support line at 1.2400.


USD/CHF: This currency trading instrument closed at 0.9590, On Friday, November 14, 2014. The price action is a threat to the bull, especially when the price goes below the support line at 0.9550. However, some would think of buying pullbacks on this instrument, provided that the price does not go below the aforementioned support line.   

GBP/USD:  The Cable dropped by roughly 300 pips last week, testing the accumulation territory at 1.5600. There is now a shallow upwards bounce from that territory, which should be short-lived as the Cable continues to be weak. Any movement above the distribution territory at 1.5800 would seriously threaten the bearish outlook.

USD/JPY: The USD/JPY moved upwards by over 250 pips last week. Obviously, the JPY is very weak and this is aiding the bullish runs on most JPY pairs. The strength in this pair could continue this week, and therefore, it would be nice to look for how to go long when there are transient pullbacks in the market.

EUR/JPY:  This cross enjoyed a nice bullish run last week, going upwards by over 300 pips. The EUR particularly is making serious attempts to go further upwards and as such, this pair may continue trading upwards, reaching the supply zone at 146.50.  

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group




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