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Monday, March 27, 2017

Daily analysis of major pairs for March 26, 2017

The EUR/USD moved slightly upwards last week, testing the resistance line at 1.0800 many times, without being able to close above it on Friday. Price may eventually go above the resistance line at 1.0800, but there may not be protracted bullish movement after that, because there are high chances of EUR pairs getting weak this week.

EUR/USD: The EUR/USD moved slightly upwards last week, testing the resistance line at 1.0800 many times, without being able to close above it on Friday. Price may eventually go above the resistance line at 1.0800, but there may not be protracted bullish movement after that, because there are high chances of EUR pairs getting weak this week.

USD/CHF: The USD/CHF moved downwards last week, testing the support level at 0.9900 many times, without being able to close below it on Friday. Price may eventually go below the resistance level at 0.9900 but there may not be protracted bearish movement after that (especially when the EUR/USD loses stamina). Price is already below the great psychological level at 1.0000, and may face some challenge in going above it, although expected weakness in CHF may help stabilize the market.




GBP/USD: Last week, this currency trading instrument went upwards, reaching the distribution territory at 1.2500. There is a lot of activity around that distribution territory, which would soon be breached to the upside, as price goes towards another distribution territories at 1.2550 and 1.2600. The outlook on GBP pairs is bullish this week, and the GBP/USD is no exception.

USD/JPY:  Last week, price dropped by 150 pips. The USD/JPY has been trending downwards since March 10, 2017, having gone down more than 430 pips since then, and now it is active around the demand level at 111.00. Another demand zone at 110.50 and 110.00 could be tested within the next few trading days before there is reversal in the market.

EUR/JPY: There is a clear Bearish Confirmation Pattern on this cross, which moved downwards last week, testing the demand zone at 119.50. Once the demand zone is breached to the downside, price would move towards another demand zones at 119.00 and 118.50. However, the southwards movement may be far from holding out because there could be a rally on other JPY pairs before the end of March. The EUR/JPY would also be no exception.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group




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