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Sunday, January 25, 2015

Daily analysis of major pairs for January 26, 2015

The EUR/USD is now one of the weakest of the popular pairs and crosses. Since January 2, 2015, the price has fallen by roughly 900 pips. There was a massive drop in the market last week, enabling the price to drop below the support line at 1.1150. Although the price bounced upwards after that, the support line would be breached soon.

EUR/USD: The EUR/USD is now one of the weakest of the popular pairs and crosses. Since January 2, 2015, the price has fallen by roughly 900 pips. There was a massive drop in the market last week, enabling the price to drop below the support line at 1.1150. Although the price bounced upwards after that, the support line would be breached soon.


USD/CHF: The outlook on this special market remains unchanged. The bias on this currently abnormal market is bearish but it is expected that the bullish correction would continue gradually in spite of occasional large bearish corrections. The USD/CHF would, therefore, move upwards by at least, 500 pips this week.  The upwards movement would, however, be slow and gradual.

GBP/USD: One nice thing about the Cable is that it is now going in a clean positive correlation with the EUR/USD. The two pairs tend to go in positive correlation with each other – an established habit. The Cable and the EUR/USD are both dropping, but the drop in the latter is more significant than the drop in the former. On the Cable, further drop is expected this week.

USD/JPY: The situation on the USD/JPY is a kind of dicey right now; but it is more probable that the pair would go further south, as a result of perceived strength in the JPY. This market can reach the demand level at 117.00 soon.

EUR/JPY:  This is one of the weakest among the JPY pairs – largely because of the strong weakness in the EUR itself. On Friday, January 23, 2015, the price closed on a bearish note. More southerly movement is expected this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group



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