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Sunday, May 17, 2015

Daily analysis of major pairs for May 18, 2015

The USD/CHF dropped last week, testing the support level at 0.9100. The outlook on this market is bearish for this week, especially in the face of the current strength in the EUR/USD (which would keep the USD/CHF under selling pressure). Another factor is that the CHF could be strengthened this week.

EUR/USD: The EUR/USD moved upwards by 300 pips last week; rising from the support line at 1.1150 and closing around the resistance line at 1.1450.   There is a possibility that the price would go further upwards this week, as the bulls target the resistance lines at 1.1500 and 1.1550.


USD/CHF: The USD/CHF dropped last week, testing the support level at 0.9100. The outlook on this market is bearish for this week, especially in the face of the current strength in the EUR/USD (which would keep the USD/CHF under selling pressure). Another factor is that the CHF could be strengthened this week. This would also have effects on CHF pairs.

GBP/USD: The optimism and positive sentiments emanating from the UK are the reasons why the Cable remains strong. As long as the price stays above the accumulation territory at 1.5600, there cannot be a serious threat to the existing bullish bias. The bulls may target the distribution territories at 1.5850 and 1.5900 this week. 

USD/JPY: Swing and position traders would do well to stay away from this market, which has essentially been consolidating for several weeks in a row. The price oscillates between the demand level at 118.50 and the supply level at 120.50. It is only a break beyond any of the aforementioned demand and supply levels that would probably result in a clean directional bias.

EUR/JPY: From the demand zone at 133.50, this cross journeyed upwards by over 300 pips, closing at 136.60 on Friday, May 15, 2015. The next movement of the price would be determined by the conditions of the EUR itself; but right now, there is a clear Bullish Confirmation Pattern in the market.

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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