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Sunday, March 12, 2017

Daily analysis of major pairs for March 13, 2017

The EUR/JPY moved sideways in the first few days of last week, and then broke northwards, gaining about 280 pips. Price closed at 122.51 on Friday, ready to go further northwards. This week, the outlook on JPY pairs is bullish and EUR/JPY is expected to continue going upward, by at least, another 200 pips. Another factor that could help the cross is the stamina in the EUR itself. 

EUR/USD: From Monday to Thursday, this currency trading instrument went gradually south. But further southwards movement was halted as price shot upwards by 170 pips from the low of last Thursday. This has resulted in a “buy” signal, and the next target for price to reach is the resistance line at 1.0700. Then price would go towards the resistance lines at 1.0750 and 1.0800. USD is supposed to be weak this week – a factor that can help the EUR/USD to rally further.




USD/CHF: There is a weak bullish bias on the USD/CHF. Price managed to trudge upwards last week, reaching the resistance level at 1.0150, and battering it several times without being able to breach it to the upside. Price was corrected lower on Friday, and further correction is possible, which would enable price to reach the support lines at 1.0050 and 1.0000. Another factor that can bring about this expectation is the fact that USD may be weakened this week. Then, as long as the EUR/USD is going upwards, USD/CHF may find it difficult to go upwards.

GBP/USD: This pair has gone south by 130 pips this week; having gone south by 310 pips since February 27, 2017. It looks like the accumulation territory at 1.2150 has become strong enough to prevent further southwards journey, after being battered unsuccessfully by bears. The outlook on USD is weak for this week, and this could be a factor that can cause some rally here.

USD/JPY:  Just like the EUR/JPY, the USD/JPY also went sideways last week, and then moved upwards. On Friday, price closed below the supply level at 115.00. This week, price could go upwards, but this effort could be scuttled by the expected weakness in USD. There are supply levels at 116.00, 115.50 and 115.00. There are also demand levels at 114.50, 114.00 and 113.50.

EUR/JPY: The EUR/JPY moved sideways in the first few days of last week, and then broke northwards, gaining about 280 pips. Price closed at 122.51 on Friday, ready to go further northwards. This week, the outlook on JPY pairs is bullish and EUR/JPY is expected to continue going upward, by at least, another 200 pips. Another factor that could help the cross is the stamina in the EUR itself. 

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


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