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Sunday, February 14, 2016

Daily analysis of major pairs for February 15, 2016

The EUR/JPY dropped by 450 pips last week, owing to the strength in the Yen. Even the bullish effort on the EUR was unable to prevent the smooth southward movement. The price reached the demand zone at 126.00, and it could go below it despite the current upwards bounce present in the market. The upward bounce could end up being another opportunity to go short.   

EUR/USD:  This pair went upwards by 220 pips last week, topping at the resistance line at 1.1350, before the ongoing shallow retracement, which might proffer new long opportunities. The price is above the EMA 56 (which itself is below the EMA 11). Should the Williams’ % Range period 20 saunter into the oversold territory, another “buy” signal might be triggered.



USD/CHF: There is a strong Bearish Confirmation Pattern in the USD/CHF 4-hour chart. Price dropped by more than 250 pips last week, going briefly below the support level at 0.9700 before coming upwards a bit. Since the USD is weak against the EUR and the CHF, it is logical to conclude that the USD/CHF price would come further south this week, testing the support levels at 0.9700 and 0.9600.

GBP/USD:  This Cable simply traded sideways last week, though in the context of an uptrend. There is going to be a breakout this week, which would either take the price above the distribution territory at 1.4600, supporting the recent bullish outlook; Or the price would go below the accumulation territory at 1.4350, leading to a bearish signal.

USD/JPY: The USD/JPY dropped sharply last week – in a continuation of the strong bearish bias that started on January 29, 2016.Last week, the price dropped by 600 pips (from the weekly high on Monday) before the current upward bounce. In spite of the current near-term rally in the context of a downtrend, there is still a possibility of further southerly movement.

EUR/JPY: The EUR/JPY dropped by 450 pips last week, owing to the strength in the Yen. Even the bullish effort on the EUR was unable to prevent the smooth southward movement. The price reached the demand zone at 126.00, and it could go below it despite the current upwards bounce present in the market. The upward bounce could end up being another opportunity to go short.  

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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