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Sunday, January 11, 2015

Daily analysis of major pairs for January 12, 2015

The USD/CHF tested the resistance level at 1.0200 vigorously, but it was unable to break it to the upside. There is now a slight dip in the market, but with further strength in the USD, the resistance level could be breached to the upside. On the other hand, there is a possibility that the price may test the support lines at 1.0100 and 1.0050 this week. 

EUR/USD: This pair trended downwards last week, going below the support line at 1.1800, but unable to close below that line. There is now a slight upwards bounce in the market, which could be the beginning of a medium-term buying pressure in the market. The resistance line at 1.1950 could be challenged.  


USD/CHF: The USD/CHF tested the resistance level at 1.0200 vigorously, but it was unable to break it to the upside. There is now a slight dip in the market, but with further strength in the USD, the resistance level could be breached to the upside. On the other hand, there is a possibility that the price may test the support lines at 1.0100 and 1.0050 this week. 

GBP/USD: The GBP/USD trended further downwards by roughly 250 pips last week, challenging the accumulation territory at 1.5050. More downwards movement was halted at this point, and the price bounced upwards, going above the accumulation territory at 1.5150. The accumulation territory at 1.5050 can now defend the market against a movement that could go below it.

USD/JPY: This currency trading instrument closed at 118.45 on Friday, January 9, 2015, on a bearish note. The market has been volatile recently - moving in swings. The demand level at 118.00 could be breached to the upside before the bulls come in to push the price upwards. 

EUR/JPY:  This cross moved further downwards last week; which led to a stronger Bearish Confirmation Pattern in the market. The cross moved downwards by around 350 pips last week and it could move further downwards this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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