Daily analysis of major pairs for August 7, 2017
The EUR/JPY is a neutral market, and the neutrality continued last week. Bull made an effort to push price above the supply zone at 131.00, but the effort proved abortive as price experienced some weakness in the last few days of last week (emphasizing the neutrality in the market). On factor preventing a serious pullback in this market is the stamina in EUR. Should EUR loses strength, there would be a pullback on the EUR/JPY.
EUR/USD: This pair went upwards, testing the resistance line at 1.1900 and then dropping below the resistance line at 1.1800. The drop in the context of an uptrend may end up giving a nice opportunity to buy long at better prices. The outlook on EUR pairs is bullish for this week, and price could go upwards from here, testing the resistance line at 1.1800, 1.1850 and 1.1900.
USD/CHF: There remains a bullish signal on the USD/CHF, although price consolidated last week. The resistance level at 0.9750 has been tested and it could be tested again this week, but it is unlikely that it would be breached to the upside. The USD/CHF was able to remain bullish as a result of the weakness in CHF, which may be reversed this week. The outlook on the CHF is bullish for the week, and the USD/CHF may experience a downward movement in case CHF becomes strong.
GBP/USD: The GBP/USD was able to go upwards because of its positive correlation with the EUR/USD, which is strong in its own right. Price made some bullish attempt, which was rendered invalid as it tested the distribution territory at 1.3250 and then got rejected as price became weak on Thursday and Friday. Further weakness is a possibility because the outlook on GBP pair is bearish for this week. The accumulation territories at 1.3000 and 1.2950 could be tested.
USD/JPY: There is a huge Bearish Confirmation Pattern on the USD/JPY. Since July 11, price has dropped by 420 pips; plus the shallow bullish attempt that was seen at the end of last week pales into insignificance when compared to the overall bearish bias. The outlook on certain JPY pairs is bearish this week, and this could cause the demand level at 110.50 and 110.00 to be tested. The demand level at 110.00 was tested last week.
EUR/JPY: The EUR/JPY is a neutral market, and the neutrality continued last week. Bull made an effort to push price above the supply zone at 131.00, but the effort proved abortive as price experienced some weakness in the last few days of last week (emphasizing the neutrality in the market). On factor preventing a serious pullback in this market is the stamina in EUR. Should EUR loses strength, there would be a pullback on the EUR/JPY.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
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