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Sunday, December 13, 2015

Daily analysis of major pairs for December 14, 2015

The EUR/JPY consolidated in the first few trading days of last week, and then traded lower. The lower movement was shallow because the extant bias remains bullish. It is possible that the price would continue trading lower, which may threaten the bullish bias. The only thing that can change this is when the Yen loses stamina.       

EUR/USD: The bullish breakout that happened on this pair on December 3, 2015 has been sustained so far. This means that the breakout was not a false one. The price moved upwards last week, closing just below the resistance line at 1.1000, which is an important price area. With the ongoing buying pressure in the market, the price could go above the resistance line this week. One thing should be noted, we may witness some weakness in the EUR/USD before the end of this month.  


USD/CHF: The USD/CHF traded further downward last week. Within the last two weeks, the price has come down by over 460 pips, suggesting further southward attempts. This is possible because the USD/CHF faces two challenges: the Euro is strong and the Swiss Franc could potentially rally before the Christmas Eve. Nonetheless, the USD might rally against other currencies.

GBP/USD:  From Monday to Tuesday last week, the Cable trended downwards. However, from Tuesday to Friday, it trended upwards, closing above the accumulation territory at 1.5200. An upwards of 250 pips since last Tuesday has enabled a Bullish Confirmation Pattern to form in the market. The distribution territories at 1.5250 and 1.5300 are potential targets for the bulls, though that does not rule out the chances of pullbacks in the market.

USD/JPY: After almost reaching the supply level at 123.50, this currency trading instrument pulled backed in a large manner (a movement of 250 pips). This has led to a “sell” signal in the market, though the outlook on JPY pairs remains bullish for the month of December 2015. Until that bullish outlook materializes, the current “sell” signal should be respected.

EUR/JPY:  The EUR/JPY consolidated in the first few trading days of last week, and then traded lower. The lower movement was shallow because the extant bias remains bullish. It is possible that the price would continue trading lower, which may threaten the bullish bias. The only thing that can change this is when the Yen loses stamina.     

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  

1 comment:

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