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Sunday, February 1, 2015

Daily analysis of major pairs for February 2, 2015

The EUR/JPY made a noteworthy effort to rally in the context of a downtrend, but the overall bias remains bearish. Only a movement above the supply zone at 135.00 can render this bias invalid. Otherwise, further southerly journey is expected this week.

EUR/USD: This pair moved upwards last week and later consolidated till the end of the week. However, the overall bias is bearish. On Friday, January 29, 2015, the price closed at 1.1285, in a context of the downtrend. Only a movement above the resistance line at 1.1450 could render the bearish outlook invalid, for the EUR/USD has remained consistently bearish for a long period of time.

USD/CHF: As forecasted, the USD/CHF has moved upwards in a slow and steady manner and this upwards movement is supposed to continue this week, allowing further upwards movement in the market.

GBP/USD: Last week was characterized by a serious contest between the bulls and the bears, with each side winning temporarily. Towards the end of the week, the bears flexed their muscles strongly and ended up pushing the price lower. There is a now a ‘sell’ signal in this market.

USD/JPY: There was no much activity in this market last week, save occasional short-term upswings and downswings in the market. This week, it is either the supply level at 119.00 is breached to the upside or the demand level at 117.00 is breached to the downside.

EUR/JPY:  The EUR/JPY made a noteworthy effort to rally in the context of a downtrend, but the overall bias remains bearish. Only a movement above the supply zone at 135.00 can render this bias invalid. Otherwise, further southerly journey is expected this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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