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Sunday, February 22, 2015

Daily analysis of major pairs for February 23, 2015

The USD/CHF moved upwards by 200 pips last week, topping at the resistance level of 0.9500. That resistance level was slashed upwards, but the price could not stay above it, for the price dived by 130 pips, closing below the resistance level at 0.9400. Another close below the support level at 0.9300 is possible this week.

EUR/USD: This currency trading instrument moved largely sideways last week as the bulls and the bears struggled in vain for significant supremacy, being swayed by transitory buying and selling pressure. There is a support line at 1.1300 and a resistance line at 1.1450; and the price would break either to the downside or the upside. Nevertheless, a break above the resistance line at 1.1450 is more likely this week.


USD/CHF: The USD/CHF moved upwards by 200 pips last week, topping at the resistance level of 0.9500. That resistance level was slashed upwards, but the price could not stay above it, for the price dived by 130 pips, closing below the resistance level at 0.9400. Another close below the support level at 0.9300 is possible this week.

GBP/USD: The Cable has been able to go high so far, forming higher highs and lower highs in the market. The distribution territory at 1.5450 has already been challenged and it could be challenged again. While the price may go as far as another distribution territory at 1.5500, it is more likely that the GBP may see limited bullish movement this week. In other word, the probability of a southward plunge is high.

USD/JPY:  The USD/JPY did not move significantly upwards or downwards last week. The price has thus consolidated as a rise in momentum is awaited.  A break to the upside is more likely this week or next week.

EUR/JPY:  This market is currently in an equilibrium phase and it would be OK to wait until there is a break below the demand zone at 134.00 or a break above the supply zone at 136.50. The latter action is more likely.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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