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Sunday, January 24, 2016

Daily analysis of major pairs for January 25, 2016

 The USD/JPY tested the demand level at 116.00, and then bounced upwards by 280 pips. This is a threat to the extant bearish outlook on the market, which would eventually be rendered invalid in case the price continues going further upwards this week. The outlook on USD is bright and therefore, the USD/JPY might continue moving upwards.       

EUR/USD: The EUR/USD was able to move downwards last week, closing just below the resistance line at 1.0800 on Friday. There is now a Bearish Confirmation Pattern on this pair, which means the price could begin to trend further downwards. There is a potential bearish target at the support line of 1.0750, while the resistance line at 1.0950 is a formidable barrier to the bulls.


USD/CHF:  There was an upwards movement of 150 pips on the USD/CHF last week – something that has caused a clean bullish signal in the market. Since the important market level at 1.0100 is being breached upwards successfully, it might be logical to assume that the price would continue moving north. The potential targets for the bulls this week are the resistance levels at 1.0200 and 1.0250.

GBP/USD:  From Monday to Wednesday, GBP/USD moved downwards by 170 pips, testing the accumulation territory at 1.4100 last week. From that territory, the price started making some bullish effort, which might not render the current bearish bias invalid unless the price moves above the distribution territory at 1.4500. This would require serious attempts from the bulls because a strong USD would make it difficult for this pair to rally this week.

USD/JPY:  The USD/JPY tested the demand level at 116.00, and then bounced upwards by 280 pips. This is a threat to the extant bearish outlook on the market, which would eventually be rendered invalid in case the price continues going further upwards this week. The outlook on USD is bright and therefore, the USD/JPY might continue moving upwards.      

EUR/JPY:  The outlook on this market remains bearish and unchanged, though there are mixed signals in the market. It is better to stay away from this market until there is a directional signal. There may be a breakout this week, which would be influenced by the events affecting the Euro. There would be a break above the supply level at 129.00 or below the demand level at 126.50 this week.

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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