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Sunday, October 4, 2015

Daily analysis of major pairs for October 5, 2015

The USD/CHF performed a large pullback on Friday, in the context of an uptrend. Unless the price goes below the support level at 0.9600, the pullback would proffer a wonderful opportunity to go long at a better price. The resistance level at 0.9800 could be tested this week, but a strong buying pressure is required for the resistance level at 0.9850 to be broken.

EUR/USD:  The EUR/USD was volatile last week, being alternated with short-term bullish and bearish swings. The rally that took place of October 2, 2015 enabled the price to test the resistance line at 1.1300. However, the price could not close above the resistance line, since it eased a little. The price could ease further today, enabling the support lines at 1.1150 and 1.1100 to be tested.


USD/CHF: The USD/CHF performed a large pullback on Friday, in the context of an uptrend. Unless the price goes below the support level at 0.9600, the pullback would proffer a wonderful opportunity to go long at a better price. The resistance level at 0.9800 could be tested this week, but a strong buying pressure is required for the resistance level at 0.9850 to be broken.

GBP/USD:  The Bearish Confirmation Pattern in this market is still a valid thing; in spite of the last bullish attempt. The bullish attempt could prove to be a false breakout, except the distribution territory at 1.5300 is overcome. There is an expectation of a large movement in this market this week, which would favor either the bull or the bear.

USD/JPY:  Owing to the ongoing struggle between the bull and the bear, this currency trading instrument has become quite choppy because there is not yet a strong directional movement. This week, the price would either break the supply level at 121.00 to the upside or break demand level at 118.00 to the downside. This condition must be fulfilled before it can be said that the consolidation phase in the market is over.

EUR/JPY: There is also no large directional movement here; though the bias remains bearish. An upwards movement of 200 pips could lead to a “buy” signal. It is possible that the Yen would lose some strength this week, which would help the price to go further north. Otherwise, we would see a test of the demand zones at 133.50 and 133.00.

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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