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Sunday, May 10, 2015

Daily analysis of major pairs for May 11, 2015

This week, the event on the EUR/JPY cross would largely be determined by the strength in the EUR itself. Should EUR continue to maintain its stamina, the cross would continue its bullish journey, testing the supply zones at 136.00 and 136.50. Any significant weakness in the EUR would cause the cross to plummet.   

EUR/USD: This currency trading instrument will be a major determinant of the movement of the USD/CHF and the EUR/JPY this week. So keep a close watch on it.


USD/CHF: This pair is trying to make a rally in the context of an overall bearish bias. This week, the event on the pair would be dictated by what happens to the EUR/USD itself. Unless there is a vivid weakness in the EUR/USD, the present rally on the USD/CHF would result in nice opportunities for the bears to enter at short at better prices.

GBP/USD: The outlook for the Cable this week and this month is bearish – though the current bias is bullish. The current bullish bias is largely determined by the positive sentiment and optimism emanating from the UK. This bullish sentiment may continue to push the price further upwards, but any failure of the price to stay above the accumulation territories at 1.5250 and 1.5200 could result in a threat to the existing bias.

USD/JPY: The condition on the USD/JPY is now precarious, because the market is currently volatile, with upswings and downswings being short-term in nature. Position and swing traders may do well to stay away from this market until there is a protracted movement in one direction. Meanwhile, the market is favorable to scalpers and intraday traders.  

EUR/JPY: This week, the event on the EUR/JPY cross would largely be determined by the strength in the EUR itself. Should EUR continue to maintain its stamina, the cross would continue its bullish journey, testing the supply zones at 136.00 and 136.50. Any significant weakness in the EUR would cause the cross to plummet, testing the demand zones at 133.00 and 132.50.   


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  

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