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Sunday, November 6, 2016

Daily analysis of major pairs for November 7, 2016

The GBP/USD went upwards by 370 pips last week, testing the distribution territory at 1.2550. This has led to a bullish bias in the short-term, and additional movement of 1000 pips to the upside would also result in bullish bias on a bigger timeframe like the daily chart. Unless USD gathers lots of stamina this week, bulls would attempt to reach the distribution territories at 1.2600 and 1.2650.

EUR/USD: This market was able to go further upward, following the rally attempt it began on October 28. Since then, price has gone upwards 240 pips, leading to a bullish outlook on the market, Further rally is anticipated this week, for bulls would be willing to target the resistance lines at 1.1150, 1.1200 and 1.1250. The only threat to the current bullish signal is when USD gathers vivid stamina. 



USD/CHF: Since this pair could not go above the great psychological level at 1.0000 (even an attempt to reach it on October 25 was forestalled), price dropped sharply last week. The market closed below the resistance level at 0.9700, forming a strong Bearish Confirmation Pattern in the 4-hour chart. Unless USD gathers lots of stamina this week, further bearish movement is possible.

GBP/USD: The GBP/USD went upwards by 370 pips last week, testing the distribution territory at 1.2550. This has led to a bullish bias in the short-term, and additional movement of 1000 pips to the upside would also result in bullish bias on a bigger timeframe like the daily chart. Unless USD gathers lots of stamina this week, bulls would attempt to reach the distribution territories at 1.2600 and 1.2650.

USD/JPY: The USD/JPY went flat on Monday, and then began to decline on Tuesday. Price almost tested the demand level at 102.50, and it would make an attempt to test it this week (it could even breach it to the downside). The recent bullish bias has been rendered invalid because of the decline that was witnessed last week. However, this does not rule out a possibility of bullish attempts on JPY pairs.

EUR/JPY: This currency trading instrument did not do anything significant last week. Price merely underwent some bearish correction in the middle of last week, and then ended with a bullish candle on Friday. By the end of this week, price would have gone above the supply zone at 115.50; or below the demand zone at 113.00.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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