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Sunday, January 29, 2017

Daily analysis of major pairs for December 30, 2017

There is a bullish signal on the EUR/JPY. Last week, price moved upwards by 210 pips, from the low of January 23. Price has closed above the demand zone at 123.00, and it may now target the supply zones at 123.50, 124.00 and 124.50.

EUR/USD: The EUR/USD is in a bullish mode, but price merely consolidated throughout last week, not being able to stay above the resistance line at 1.0750. For the current bullish outlook to continue to make sense, price would need to go above the resistance line at 1.0750, and also reach another resistance line at 1.0800; otherwise a serious pullback may be experienced.

USD/CHF:  The USD/CHF only went flat throughout last week, in the context of a downtrend. The market has, interestingly oscillated around the psychological level at 1.0000. Should the market stay around that level for the next several trading days, the bias on the market would turn neutral. For a directional bias to form, the market would need to move further away from that level. A strong movement to the south would emphasize the recent weakness in the market, while a strong movement to the north would result in a new bullish outlook.



GBP/USD: Since the beginning of last week, the GBP/USD has moved upwards by 660 pips. The market topped at the distribution territory at 1.2650, and then retraced a bit. The retracement continued until the market closed on Friday. The bias is still bullish and as long as price does not go below the accumulation territory at 1.2300, the bullish outlook would be valid.

USD/JPY: This currency trading instrument went downwards on Monday, and then began to trend upwards from Tuesday (till the end of the week). This has made price action to generate a “buy” signal in the short-term, which may continue to be valid as price goes further north. This is something that can lead to a Bullish Confirmation Pattern in the market.  

EUR/JPY: There is a bullish signal on the EUR/JPY. Last week, price moved upwards by 210 pips, from the low of January 23. Price has closed above the demand zone at 123.00, and it may now target the supply zones at 123.50, 124.00 and 124.50.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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