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Sunday, July 19, 2015

Daily analysis of major pairs for July 20, 2015

EUR/USD: The EUR/USD dropped by 280 pips last week, closing below the resistance line at 1.0850. The next targets for the bears are located around the support lines at 1.0800 and 1.0750. The recalcitrant resistance lines at 1.0950 and 1.0900 were successfully broken by the bears and thus, they might resist any rally attempts this week.


USD/CHF: As long as the EUR/USD goes down, this pair must go up. The pair moved upward by over 200 pips last week, closing above the support level at 0.9600. A break of the support level at 0.9500 (which was formerly a resistance level) was a major achievement for the bulls. Until the EUR or the CHF gains a lot of stamina, this pair would continue going up.

GBP/USD:  This currency trading instrument rallied last week, but further rally was halted at the distribution territory at 1.5650. For the bullish bias to continue to be valid, the distribution territory must be breached to the upside: otherwise there could be a risk of a strong bearish correction this week.

USD/JPY:  A few weeks ago, this market began to rally from the demand level at 120.50. It rallied by over 350 pips, going slightly above the demand level at 124.00. With further buying pressure, the supply level at 124.50 would be breached this week. 

EUR/JPY:  This cross first consolidated last week, but it then broke downwards on Thursday, trending lower and lower gradually. On Friday, the price closed below the supply zone at 134.50; and since there is a strong Bearish Confirmation Pattern in the chart, it is assumed that the journey to the south would continue, especially as long as the EUR is weak.

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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