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Sunday, January 4, 2015

Daily analysis of major pairs for January 5, 2015

The Cable plunged by over 250 pips on Friday – a surprise movement. The price closed below the distribution territory at 1.5350, going towards the accumulation territory at 1.5300. That is the first target for this week, and it is supported by the strong Bearish Confirmation Pattern in the chart. 

EUR/USD: The EUR/USD trended downwards on Friday, closing below the resistance line at 1.2050. The support line at 1.2000 is being tested and with further exertion of selling pressure, it may be breached to the downside. After this, the price may then go for another support line at 1.1950.


USD/CHF: This currency trading instrument trended upwards on Friday, closing above the support level 1.0000, which is the level of parity between the USD and the CHF. The price may go for another resistance level at 1.0050 and with further exertion of buying pressure; it may be breached to the upside. After this, the price may then go for another resistance level at 1.100.

GBP/USD: The Cable plunged by over 250 pips on Friday – a surprise movement. The price closed below the distribution territory at 1.5350, going towards the accumulation territory at 1.5300. That is the first target for this week, and it is supported by the strong Bearish Confirmation Pattern in the chart. 

USD/JPY: This pair is bullish in outlook. On Friday, January 2, 2015, the price closed at 120.50 on a bullish note. There is a possibility that the market may go further upwards this week, reaching the demand level at 121.00. However, there is also a possibility of a pullback, which may force the price to dive towards the demand levels at 119.50 and 119.00 successively.

EUR/JPY:  This cross dived further on Friday, moving close to the demand zone at 144.00. The demand zone is expected to be tested again: it may even be breached to the downside.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group



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