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Sunday, January 18, 2015

Daily analysis of major pairs for January 19, 2015

The current bullish effort on the USD/JPY is seen as another opportunity to sell short. The supply levels at 118.00 and 118.50 may defend the bearish outlook while there is a possibility that the demand levels at 116.50 and 116.00 could be tested again.

EUR/USD: This pair trended downwards by more than 300 pips last week and therefore, the current upwards bounce is shallow and it pales into insignificance when compared to the existing bearish outlook. The support lines at 1.1500 and 1.1450 could be challenged again and they can be overcome.


USD/CHF: When the USDCHF dropped like a stone last week, the EURUSD ought to spike skywards, since they are negatively correlated in a normal condition. The latter was not affected, and both pairs cannot remain bearish for a long time (and the USD is strong in its own right). USDCHF would, therefore, move upwards by at least, 500 pips this week. 

GBP/USD: This currency trading instrument first went upwards by 150 pips and later dropped by over 100 pips. The overall outlook is southwards and the accumulation territories at 1.5100 and 1.5050 could be tried this week.

USD/JPY: The current bullish effort on the USD/JPY is seen as another opportunity to sell short. The supply levels at 118.00 and 118.50 may defend the bearish outlook while there is a possibility that the demand levels at 116.50 and 116.00 could be tested again.

EUR/JPY:  Since the beginning of this year, this cross has dropped by around 1000 pips (it dropped by around 400 pips last week). The price closed below the supply zones at 136.50, and it is expected to go further downwards, reaching the demand zones at 134.50 eventually. The only thing that can change the bearish outlook this week is the event in which the JPY is weakened.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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