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Sunday, July 24, 2016

Daily analysis of major pairs for July 25, 2016

The Cable traded sideways last week, not going above the distribution territory at 1.3400, nor going below the accumulation territory at 1.2950. This has caused the bias to become neutral in the near-term. But there could be a breakout this week or next, which would push price above or below the aforementioned accumulation and distribution territories.

EUR/USD: This pair moved south 100 pips, closing just above the support line at 1.0950. There is a “sell” signal in the 4-hour chart and there is a high probability that price would go further downwards this week, especially in the face of expected stamina in USD, which would aid bears.



USD/CHF: The USD/CHF has been able to maintain its bullishness. There is a Bullish Confirmation Pattern in the chart, and further upwards movement is possible. Price has gone above the support level at 0.9850, testing the resistance level at 0.9900. Despite several bullish attacks, the resistance level is yet to be broken to the upside. However, that objective could be realized this week.  

GBP/USD:  The Cable traded sideways last week, not going above the distribution territory at 1.3400, nor going below the accumulation territory at 1.2950. This has caused the bias to become neutral in the near-term. But there could be a breakout this week or next, which would push price above or below the aforementioned accumulation and distribution territories.

USD/JPY: This market first went upwards 200 pips, topping at 107.48. Further bullish signal was rejected at that point and price began to be corrected to the downside – at least by 150 pips. However, this has not rendered the bullish bias invalid (expect price drops by another 150 pips). Additional drop is thus expected this week because JY pairs might come under selling pressure anytime in the week.

EUR/JPY: There are mixed signal on this cross. It simply consolidated to the downside last week, but things have not gone completely bearish. That expectation could come to fruition this week; owing to a possible weakness in JPY pairs. Thus, bears might be able to target the demand zones at 116.00, 115.50 and 115.00 this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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