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Sunday, February 8, 2015

Daily analysis of major pairs for February 9, 2015

The EUR/USD is weak and therefore, it is expected that the USD/CHF would be strong. The outlook for the latter is bullish and the outlook for the former is bearish. As said in earlier forecasts, this market would continue its slow and gradual upward movement this week, though this may not be without occasional, but short-term bearish corrections.

EUR/USD: The effort of the bulls in this market has invariably been rendered useless by the bears. The resistance line at 1.1500 was challenged but it was not overcome. The bears are currently trying to push the price south; which may enable the price to reach the support line at 1.1300 - an important level in its own right. Only a break above the resistance line at 1.1500 could render the bearish outlook invalid.

USD/CHF: The EUR/USD is weak and therefore, it is expected that the USD/CHF would be strong. The outlook for the latter is bullish and the outlook for the former is bearish. As said in earlier forecasts, this market would continue its slow and gradual upward movement this week, though this may not be without occasional, but short-term bearish corrections.

GBP/USD: The bias on the Cable has become bullish in the near-term. The market moved upwards by 350 pips last week, from the accumulation territory at 1.5000, which has become a formidable barrier to the bears’ machination. The distribution territory at 1.5350 was tested last week and it could be tested again.

USD/JPY: This popular market trended upwards significantly on Friday. Prior to this day, the market was consolidating between the demand level at 117.00 and the supply level at 119.00. A break above the supply level at 119.00 shows a new lease of bullish bias.

EUR/JPY:  On Friday, February 6, 2015, this currency trading instrument closed at 134.81, on a bullish note. The outlook for most JPY pairs is bullish, and this instrument could be going upwards this week. A close above the supply zone at 136.00 would result in an unambiguous Bullish Confirmation Pattern.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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