Adsense

Sunday, January 31, 2016

Daily analysis of major pairs for February 1, 2016

Last week, the USD/JPY moved sideways from Monday to Thursday, in the context of an uptrend. On Friday, January 29, 2016, the price broke upwards significantly, testing the supply level at 121.50 (a movement of 300 pips). The outlook on USD/JPY, including other JPY pairs, is bullish for this week, and for this month. It is thus expected that the USD/JPY would continue moving upwards this week.   

EUR/USD:  The bias on this market is neutral in the first place, because all the bulls’ effort to effect a protracted rally has been invariably frustrated by the bear’s obstinacy. Unless one is a scalper, it would be Ok to stay away from this market until there is a directional movement, which would most probably favor the bears. 


USD/CHF:  This currency trading instrument consolidated for the first few days of last week and then rallied further, reinforcing the existing bullish bias in the market. The price was able to go above the support levels at 1.0150 and 1.0200. The resistance level at 1.0250 has already been tested, and the market is expected to go above it, reaching the resistance level at 1.0300. There is a Bullish Confirmation Pattern in the market.  

GBP/USD:  It has always been said that rallies should be avoided on this pair and they should be taken as opportunities to sell short. That was exactly what happened last week. The bullish effort we saw from Monday to Thursday was frustrated by a 200-pip bearish correction that happened on Friday. In fact, the bearish journey is supposed to continue this week and this month, for the outlook on GBP pairs is bearish.  

USD/JPY:  Last week, the USD/JPY moved sideways from Monday to Thursday, in the context of an uptrend. On Friday, January 29, 2016, the price broke upwards significantly, testing the supply level at 121.50 (a movement of 300 pips). The outlook on USD/JPY, including other JPY pairs, is bullish for this week, and for this month. It is thus expected that the USD/JPY would continue moving upwards this week.  

EUR/JPY:  Just like the USD/JPY and other JPY pairs, this cross moved upwards seriously last week. Before the event of January 29, 2016, this cross was already engaged in a slow and steady upwards movement. Altogether the price went upward by 400 pips last week, before experiencing a shallow pullback on Friday. Further rally is possible as the market proffers long opportunities with pullbacks along the way. 

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  

No comments:

Post a Comment