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Monday, October 31, 2016

Daily analysis of major pairs for October 31, 2016

The EUR/JPY went upwards by 230 pips last week, closing above the demand zone at 115.00 on Friday. There is now a Bullish Confirmation Pattern in the 4-hour chart, and the last candlestick on Friday reveals that bulls are still willing to push price further upwards this week. Therefore, the supply levels at 115.50, 116.00 and 116.50 would be targeted this week. In spite of the weakness in EUR, the market would continue going upwards.



EUR/USD: This market consolidated last week, and trended upwards on Friday. But the upwards attempt has not been strong enough to invalidate the overall bearish bias. This may then be seen as an opportunity to seek short trades, because the outlook on the EUR/USD and most EUR pairs, is bearish this week. The only thing that can reverse this bearish situation in the market is a large pullback in the USD/CHF.

USD/CHF: After a series of hesitation, the USD/CHF was able to go above the decisive resistance level at 0.9900. However, bears came in to push price below that resistance level. The bias on the market remains bullish and further upwards movement is expected, though it is unlikely that price would be able to go above the resistance level at 1.0000, which is an important one. CHF itself may exert some form of bullishness before the end of November 2016, though USD is strong in its own right. A serious buying pressure would be needed for the resistance level at 1.0000 to be breached to the upside; otherwise, a large pullback may occur.

GBP/USD: The Cable has been consolidating for about two weeks – an even that has resulted in a neutral bias in the short-term. The long-term outlook on the market remains bearish and when momentum rises, it would most likely favor the bears. Strong volatility would be witnessed on GBP pairs this week, and some of them would be weaker in most cases.
USD/JPY: This currency trading instrument moved upwards by 160 pips last week, to test the supply level at 105.50. The outlook on JPY pairs is bullish for this week, and the current shallow pullback is seen as another opportunity to buy long when things are on sale, and in the context of an uptrend. The supply levels at 105.50, 106.00 and 106.50 may be tested this week.

EUR/JPY: The EUR/JPY went upwards by 230 pips last week, closing above the demand zone at 115.00 on Friday. There is now a Bullish Confirmation Pattern in the 4-hour chart, and the last candlestick on Friday reveals that bulls are still willing to push price further upwards this week. Therefore, the supply levels at 115.50, 116.00 and 116.50 would be targeted this week. In spite of the weakness in EUR, the market would continue going upwards.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group



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