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Sunday, May 1, 2016

Daily analysis of major pairs for May 2, 2016

The EUR/USD went upwards by 230 pips last week. The movement was a week long and that has resulted in a bullish bias in the market.  The resistance line at 1.1450 has already been tested and the price is expected to go above it this week, testing another resistance lines at 1.1500 and 1.1550.

EUR/USD: The EUR/USD went upwards by 230 pips last week. The movement was a week long and that has resulted in a bullish bias in the market.  The resistance line at 1.1450 has already been tested and the price is expected to go above it this week, testing another resistance lines at 1.1500 and 1.1550.



USD/CHF: This pair also went down throughout last week, owing to the stamina in the EUR/USD and the CHF. The price closed below the resistance level at 0.9600 on Friday, April 29, 2016. The price had already fallen by 220 pips – leading to a Bearish Confirmation Pattern in the market. Further bearish movement is expected this week.

GBP/USD: The Cable went upwards gradually last week, sustaining the bullish trend which started two weeks ago. The bulls fought a decisive battle at the distribution territory of1.4600 (which is now an accumulation territory). They are now fighting another desperate battle at the distribution territory of 1.4650, which would be overcome because the outlook on the Cable is bright for the month of May (it is also bright for crosses like GBP/AUD, and GBP/NZD).

USD/JPY: This pair moved sideways between Monday and Wednesday and dropped like a stone on Thursday. That drop was strong enough to bring about a new Bearish Confirmation Pattern in the 4-hour chart. The EMA 11 has gone below the EMA 56, while the RSI period 14 is below the level 50. The price is expected to go further south, reaching the demand levels at 106.00 and 105.50. This bearishness would also be visible on other JPY pairs this month.

EUR/JPY: The EUR/JPY went upwards from Monday to Wednesday last week, but broke down as a result of the fundamental figures released on Thursday, April 28, 2016. The price skydived by 450 pips, almost testing the demand zone at 121.50. This large pullback has resulted in a bearish signal in the market, for the price is supposed to go further south this week.  Other JPY pairs are also bearish and as a result of this, long trades are not currently logical on JPY pairs until there are clear reversals on them. However, there could be a rally on JPY pairs at the end of May 2016.

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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