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Sunday, November 27, 2016

Daily analysis of major pairs for November 28, 2016

The GBP/USD moved sideways throughout last week, resulting in a neutral bias in the near-term. The neutral bias has been going on for about two weeks, while the dominant bias on higher timeframes is bearish. A break out of the sideways movement is expected this week or next, and would most probably favor bears.

EUR/USD: This pair consolidated throughout last week – in the context of a downtrend. A rise in momentum is expected this week, and it would most probably favor bears. Therefore, the support lines at 1.0550, 1.0500 and 1.0450 would be targeted this week. This pair would make some bullish attempt in due course, but the bearish journey would eventually resume. It would even be strong in December.



USD/CHF: This pair did not go upwards significantly last week, but it made some noticeable bullish effort, in a bull market. There is a Bullish Confirmation Pattern in the chart, and when the trend resumes, the resistance levels at 1.0150, 1.0200 and 1.0250, would be tested. Bearish corrections along the way would be transitory, and may not take price below the support levels at 1.0050 and 1.0000.

GBP/USD: The GBP/USD moved sideways throughout last week, resulting in a neutral bias in the near-term. The neutral bias has been going on for about two weeks, while the dominant bias on higher timeframes is bearish. A break out of the sideways movement is expected this week or next, and would most probably favor bears.

USD/JPY: This currency trading instrument is one of the strongest moving currency pairs at the present. Since the low of November 9, 2016, price has moved upwards by 1250 pips, and the current shallow bearish correction is simply another resting phase for bulls, before they continue pushing price further northwards. The outlook on JPY pairs is bullish for this week, which could make the USD/JPY go further north.

EUR/JPY: This cross moved upwards by 250 pips last week, testing the supply zone at 120.00. The supply zone would be tested again and get breached to the upside, as price targets another supply zones at 121.00 and 122.00. One reason for this clean bullish movement is a persistent weakness in the Yen, which enables the Euro to go upwards against it until Yen will gather some stamina.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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