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Sunday, January 3, 2016

Daily analysis of major pairs for January 4, 2016

 The GBP/USD moved down by 170 pips last week, closing below the distribution territory at 1.4750. There is still a great probability that the market could continue going further south, because the outlook on the GBP/USD (including other GBP pairs) is bearish. The price might test the accumulation territories at 1.4700 and 1.4650 this week. 

EUR/USD: The inability of the EUR/USD to go further higher has resulted in a bearish movement, though slight it was. The price is now threatening to test the support line at 1.0850; which is most likely to occur. By all indication, the bears would succeed in driving the EUR/USD further south this week.


USD/CHF:  The sudden weakness in the CHF caused this pair to break out of its long-term base last week. Owing to the bullish breakout, there is now a bullish signal in the market, and there is a tendency that the market could trend further higher from here. Should that happen, the resistance levels at 1.0050 and 1.0100 could be reached soon. 

GBP/USD: The GBP/USD moved down by 170 pips last week, closing below the distribution territory at 1.4750. There is still a great probability that the market could continue going further south, because the outlook on the GBP/USD (including other GBP pairs) is bearish. The price might test the accumulation territories at 1.4700 and 1.4650 this week. 

USD/JPY:  This currency trading instrument simply consolidated last week. A closer look at the chart shows that the price consolidated to the downside at the close of trading activities last week, testifying to the ongoing weakness in the market. It is possible that the market would continue moving further downwards this week.

EUR/JPY:  The weakness in the Euro caused the EUR/JPY to drop by 150 pips last week. The movement on this cross would be determined by whatever happens to the Euro. The price might attain the demand zones at 130.00 and 129.50 before the end of this week; because there is a Bearish 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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