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Sunday, March 6, 2016

Daily analysis of major pairs for March 7, 2016

The GBP/USD moved upwards by 400 pips last week, rising from the accumulation territory at 1.3850 and reaching the distribution territory at 1.4250. This upward movement was strong enough to invalidate the recent bearish outlook on the pair, and there is a clean bullish signal in the market. The GBP/USD is supposed to continue moving upwards this week.    

EUR/USD: Last week, this pair moved down on Monday. It moved sideways from Tuesday to Thursday and afterward rose steeply by 160 pips. This kind of movement is a threat to the recent bearish bias, which would no longer be logical once the price moves further north by 200 pips this week (something which is very much likely).


USD/CHF: This currency trading instrument traded largely sideways last week, not going above the resistance level at 1.0000 and below the support level at 0.9900. There is bound to be a breakout this week, which would take the price below the aforementioned support level or above the resistance level. Since it is expected that the EUR/USD would continue going upwards, the USD/CHF would most probably go downwards.

GBP/USD: The GBP/USD moved upwards by 400 pips last week, rising from the accumulation territory at 1.3850 and reaching the distribution territory at 1.4250. This upward movement was strong enough to invalidate the recent bearish outlook on the pair, and there is a clean bullish signal in the market. The GBP/USD is supposed to continue moving upwards this week.   

USD/JPY: Since this currency trading instrument moved sideways last week, the bias on the market has turned neutral in the medium-term. Unlike other JPY pairs, the USD/JPY has not traded upwards because the Greenback is currently weak. This week, however, would determine the next direction in the market.

EUR/JPY: There is a bullish signal leading to a Bullish Confirmation Pattern on this cross, which closed at 125.23 on Friday, March 4, 2016. Since the EMA 11 has crossed the EMA 56 to the upside and the RSI period 14 has moved above the level 50, it is assumed that the cross would continue trending upwards, just as it is expected of some other JPY pairs.  

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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