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Sunday, February 21, 2016

Daily analysis of major pairs for February 22, 2016

The EUR/JPY first went upwards last Monday (February 15, 2016). On the following day, the market started dropping gradually from the high of the day, reaching the demand zone at 125.00 on Friday. This was a movement of 300 pips; plus the chances of the EUR/JPY going upwards are very slim, unless the Yen loses strength in a significant mode. The market could thus reach the demand zones at 124.50 and 124.00 this week.    

EUR/USD: The EUR/USD moved lower on Monday and then consolidated throughout last week. A closer look at the market shows that the ongoing consolidation is to the downside. Since the EMA 11 is below the EMA 56 and the Williams’ % Range period 20 is not far from the oversold region, it could be deduced that the current consolidation to the downside is a threat to the recent bullish outlook, which could invalidate it as soon as the price goes below the support line at 1.1000. 



USD/CHF: This pair moved upwards by 200 pips last week, reaching the resistance level at 0.9950 and meeting a great opposition there. Since there is a new Bullish Confirmation Pattern in the chart, further northward movement is possible this week, which would reinforce the extant Bullish Confirmation Pattern.

GBP/USD: The Cable dropped by 250 pips last week and later met a stubborn opposition at the accumulation territory of 1.4250, which has resisted further southward movement in spite of attacks into it. The bears must do all they can to break that accumulation territory to the downside; otherwise the noteworthy rally we saw on last Friday, February 19, 2016, could end up being a threat to the bearish bias on the market.

USD/JPY: Here, what happened on Monday, February 15, 2016 was just an upward bounce in the context of an uptrend. The market has moved south gradually since then, dropping by 220 pips and thus reinforcing the extant bearish bias in the market. The demand levels at 111.50 and 111.00 could be tried this week. 

EUR/JPY: The EUR/JPY first went upwards last Monday (February 15, 2016). On the following day, the market started dropping gradually from the high of the day, reaching the demand zone at 125.00 on Friday. This was a movement of 300 pips; plus the chances of the EUR/JPY going upwards are very slim, unless the Yen loses strength in a significant mode. The market could thus reach the demand zones at 124.50 and 124.00 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 


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