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Sunday, November 9, 2014

Daily analysis of major pairs for November 10, 2014

The USD/JPY tested the supply level at 115.50 several times, but it was unable to break it to the upside. There is an existing bearish pullback in the market, which could be challenged at the demand level of 113.50. Any movement below that demand level may put the bullish outlook in a precarious situation.

EUR/USD: This pair is still a weak market, but there is a good possibility that the pair may rally this week. This may happen as a result of the EUR becoming strong versus some other popular currencies, including, of course, the USD. This may happen this week or next week, and therefore we are looking for a rally here.



USD/CHF: This currency trading instrument closed at 0.9660 (on Friday, November 7, 2014). The price closed lower in the context of a downtrend. Some may see the bearish correction as another opportunity to go long, provided that the price would not go below the resistance level at 0.9600. That is a level where long trades may no longer be sensible.

GBP/USD:  The Cable dropped by 200 pips last week, testing the accumulation territory at 1.5800 before bouncing upwards beyond the accumulation territory at 1.5850. For the bearish trend to continue, the accumulation territory at 1.5800 would be tested again; otherwise the price may go above the distribution territory at 1.5950.

USD/JPY: The USD/JPY tested the supply level at 115.50 several times, but it was unable to break it to the upside. There is an existing bearish pullback in the market, which could be challenged at the demand level of 113.50. Any movement below that demand level may put the bullish outlook in a precarious situation.

EUR/JPY:  This market moved sideways in the last few days of the last trading week, on a consolidation note. The market is consolidating in the context of an uptrend. Any movement above the supply zone at 143.50 would signal the renewal of the bullish trend, but any movement below the demand zone at 141.50 would put the uptrend in jeopardy.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group



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