Daily analysis of major pairs for February 29, 2016

GBP/USD fell by almost 440 pips last week, almost reaching the accumulation territory at 1.3850. This has reinforced the existing bearish outlook on the market, and there are chances that the GBP/USD would continue going south this week and next. Generally, GBP pairs are bearish (as forecasted earlier) and they would remain under selling pressure until the end of March 2016.

EUR/USD: This pair dropped by 200 pips last week. It first dropped on Monday, and then traded sideways till Friday, and then dropped further that Friday (February 26, 2016). This is because of the weakness in the EUR, which has caused a Bearish Confirmation Pattern in the chart. The EMA 11 is below the EMA 56 in the 4-hour chart; which means the pair could trade further south.

USD/CHF: USD/CHF simply traded sideways last week, showcasing short-term oscillation between the support level at 0.9850 and the resistance level at 1.0000. There is going to be a break above that resistance level or below that support level this week, although a break below the support level is more likely, because the resistance level at 1.0000 is a great barrier and because EURUSD could be seen making some bullish attempt this week.

GBP/USD: GBP/USD fell by almost 440 pips last week, almost reaching the accumulation territory at 1.3850. This has reinforced the existing bearish outlook on the market, and there are chances that the GBP/USD would continue going south this week and next. Generally, GBP pairs are bearish (as forecasted earlier) and they would remain under selling pressure until the end of March 2016.

USD/JPY: This currency trading instrument went downwards from Monday to Wednesday, when further bearish movement was rejected and the price went upward by at least, 250 pips. This has resulted in a “buy” signal in the market. The EMA 11 has almost crossed the EMA 56 to the upside and RSI period 14 is above the level 50. The currency trading instrument could be seen trading further and further upwards this week and next.  

EUR/JPY: This cross trended downwards by almost 300 pips last week, reaching the demand zone at 122.50 on Wednesday (February 24, 2016). The cross has been corrected to the upside – by over 200 pips. This kind of correction is also visible on other JPY pairs, which would make commendable bullish efforts in March 2016.

Performed by Azeez Mustapha,

Analytical expert

www.instaforex.com    

InstaForex Companies Group

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