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Sunday, August 23, 2015

Daily analysis of major pairs for August 24, 2015

The USD/JPY ended its equilibrium phase of several weeks as it plunged massively last week. Several previously demand levels are now supply levels, and the price is close to the demand level at 121.50, which could be breached easily in case the current selling pressure continues. This is a long awaited bearish signal – it may continue to hold this week.   

EUR/USD:  This currency trading instrument is now one of the strongest among the majors. From around the support line at 1.1050, the price skyrocketed by more than 320 pips, closing at 1.1384. The resistance line at 1.1400 is an easy target for the bulls this week. Even it would be breached to the upside.


USD/CHF: The USD/CHF has yielded to gravity; diving by 300 pips. There are resistance levels at 0.9550 and 0.9600, which should do a good job in halting bullish attempts this week. There are also support levels at 0.9450 and 0.9400, which would be targeted by the bears. Since the USD is weak and the CHF is very strong, it is reasonable to conclude that the current bearish movement may continue for a while.

GBP/USD:  This is a good example of cut-throat battles between the bull and the bear. This pair ought to go upwards in a positive correlation mode with the EUR/USD: it has gone above the recalcitrant accumulation territory at 1.5650. There is a fresh battle at the distribution territory of 1.5700, but the bull should be victorious though it is not an easy thing.

USD/JPY:  The USD/JPY ended its equilibrium phase of several weeks as it plunged massively last week. Several previously demand levels are now supply levels, and the price is close to the demand level at 121.50, which could be breached easily in case the current selling pressure continues. This is a long awaited bearish signal – it may continue to hold this week.  

EUR/JPY:  There is a neat Bullish Confirmation Pattern in this market and there is a tendency that the price may continue to journey upwards, especially in the face of the strength of the Euro. The initial losses seen by the bulls last week have now been recovered and the price might even go higher.

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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