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Tuesday, January 9, 2018

Daily analysis of major pairs for January 8, 2018

The EUR/JPY went upwards to test the supply zone at 136.50. Since December 15, 2017, price has gained over 400 pips; plus it would be somewhat difficult for a lasting bearish movement to occur in the market, as long EUR has some stamina. Bulls may be able to push price towards the supply zones of 136.50, 137.00 and 137.50. 

EUR/USD:  The EUR/USD went essentially sideways last week – in the context of an uptrend. A breakout is expected this week, which is supposed to be in favor of bulls, for the outlook on EUR pairs is bullish for this month. Therefore, price may be able to gain about 150 pips, as it goes further northwards.

USD/CHF: This currency trading instrument experienced an equilibrium phase last week, as it consolidated in the context of a downtrend. The outlook on the market remains bearish; and so, when a breakout occurs, it would most likely be in favor of bears (going downwards by about 100 pips). The market cannot rally significantly as long as the EUR/USD is strong.

GBP/USD:  This pair went upwards to test the distribution territory at 1.3600. There was a pullback after that, but that was not serious enough to override the current bullish outlook. Price may be able to go upwards to test the distribution territories at 1.3600, 1.3650 and 1.3700. However, that does not eliminate possibility of a significant pullback, which may happen any time this month.




USD/JPY: Last week, the market stopped further bearish effort as it went upwards by 110 pips, thereby generating a short-term “buy” signal. Price managed to close above the demand level at 113.00 on Friday, thus making further northwards movement a possibility. This means the supply levels at 113.50 and 114.00 could be reached this week.

EUR/JPY:  The EUR/JPY went upwards to test the supply zone at 136.50. Since December 15, 2017, price has gained over 400 pips; plus it would be somewhat difficult for a lasting bearish movement to occur in the market, as long EUR has some stamina. Bulls may be able to push price towards the supply zones of 136.50, 137.00 and 137.50. 

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

                                                                                                                    


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