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Sunday, May 15, 2016

Daily analysis of major pairs for May 16, 2016

The EURUSD went downwards last week – a movement that has generated a bearish signal in the 4-hour chart. As it was mentioned last week, the outlook on this pair is bearish and further southward movement is expected this week, which could make the price go towards the support lines at 1.1250 and 1.1200.

EUR/USD: The EURUSD went downwards last week – a movement that has generated a bearish signal in the 4-hour chart. As it was mentioned last week, the outlook on this pair is bearish and further southward movement is expected this week, which could make the price go towards the support lines at 1.1250 and 1.1200.


USD/CHF: The near-term bias on this pair is bullish, since it went in the opposite direction to the EUR/USD. This week, further movement to the upside is anticipated because the outlook on USD is bright for the week. Therefore, we could see pairs like the AUD/USD, the NZD/USD, etc. getting affected (of course, the USD/CHF would go up).

GBP/USD: The Cable simply moved sideways most of last week, save the slight dip that was witnessed on Friday. A closer look at the market reveals that the bears have some form of dominance over the bulls. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. In the face of the expected stamina in the USD, the Cable might test the accumulation territories at 1.4300, 1.4250, and 1.4200 this week.

USD/JPY: The bias on the USD/JPY is bullish, though this is something precarious. Unless, the price goes above the supply level at 110.00, the bullish bias would remain weak. On the hand, a movement below the demand level at 107.50 would mean a new lease of bearish outlook. This week would determine what would happen next. 

EUR/JPY: Here, the bullish gains that were realized in the first few days of last week were forfeited in the last few days of the same week. There is currently no dominant bias on the market and the indicators are even giving mixed signals. It is better to wait for a directional movement before taking a position. Conditions surrounding the Yen would dictate the event on this cross this week (as well as on other JPY pairs).

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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