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Sunday, February 18, 2018

Daily analysis of major pairs for February 19, 2018

The USD/CHF consolidated on Monday, and then began to come down on Tuesday. Price has dropped 600 pips since January 10, and the support level at 0.9200 was tested before the current upwards bounce came into being. As long as the EUR/USD is being corrected lower, the USD/CHF would continue going upwards, leading to a bullish bias eventually.

EUR/USD: This pair moved upwards from the support line at 1.2250, to reach the resistance line at 1.2550. That was a movement of 300 pips, and once the resistance line at 1.2550 was tested, there was a 140-pip pullback in the market. The pullback may continue towards the support lines at 1.2350, 1.2300 and 1.2250. The resistance line at 1.2550 will resist any major rally in the market, because the outlook on EUR pairs is strongly bearish for this week.



USD/CHF: The USD/CHF consolidated on Monday, and then began to come down on Tuesday. Price has dropped 600 pips since January 10, and the support level at 0.9200 was tested before the current upwards bounce came into being. As long as the EUR/USD is being corrected lower, the USD/CHF would continue going upwards, leading to a bullish bias eventually.

GBP/USD:  The Cable tested the accumulation territory at 1.3800 and then went upwards towards the distribution territory at 1.4150 (nearly touching it). The pullback that followed after that has helped retain the bearishness in the market. Price closed at 1.4030 on Friday, and could go far lower and lower, because the outlook on GBP pairs is somewhat bearish this week.

USD/JPY:  This USD/JPY has dropped 720 pips since January 8. Price slammed into the demand level at 106.00 and then bounced upwards. The upwards bounce could offer another nice opportunity to short the market, because there is a Bearish Confirmation Pattern in it. The outlook on JPY pairs remains bearish for this week, and the demand levels at 106.00, 105.50 and 105.00 could be targeted.

EUR/JPY:  From the top of 137.50, the EUR/JPY cross has nosedived by at least, 550 pips. Last week, the movement of the market was a kind of choppy and sideways (in the context of a downtrend), but bears were able to pull their weight, since price closed below the supply zone at 132.00. The outlook on the market remains bearish, and that might even be aided by a weak EUR.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

                                                                                                                    


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