Daily analysis of major pairs for January 29, 2018
Since January 11, the Cable went upwards by 800 pips, reaching a high of 1.4345. Thursday and Friday saw a pullback in the market, and while price may go upwards again to test the distribution territories at 1.4300 and 1.4350, there would soon be a serious pullback, which may signal a start of a bearish journey. The outlook on GBP pairs is bearish for this week and for February.
EUR/USD: This pair gained 250 pips last week, and it has gained 800 pips since January 18. That is one of the strongest movements on the EUR/USD in recent times and price would attempt to reach the resistance lines at 1.2450, 1.2500 (which were previously tested) and 1.2550. However, there would soon be a trend reversal, which would happen this week or in February, for the outlook on the EUR pairs is bearish for February.
USD/CHF: Since November 2, 2017, the USD/CHF has lost more than 700 pips; whereas its most serious bearish movements within the past several months occurred in January 2018. Last week witnessed the strongest bearish movement, as price went south by 300 pips, testing the support level at 0.9300 and closing below the resistance level at 0.9350. Since the outlook on USD is bearish for this week and for February; and since the outlook on CHF is bright (bullish) for February, it is expected that USDCHF would remain under bearish pressures.
GBP/USD: Since January 11, the Cable went upwards by 800 pips, reaching a high of 1.4345. Thursday and Friday saw a pullback in the market, and while price may go upwards again to test the distribution territories at 1.4300 and 1.4350, there would soon be a serious pullback, which may signal a start of a bearish journey. The outlook on GBP pairs is bearish for this week and for February.
USD/JPY: This is a bear market – with a Bearish Confirmation Pattern in the chart. This month, from a high of 113.40, the market has gone south by 500 pips. The demand level at 108.50 has been tested and price has almost gone below it, poised to move further southwards. As long as the USD/ is weak, price would continue to go southwards.
EUR/JPY: This is a sideways market, which oscillates between the supply zone at 136.50 and the demand zone at 135.00 (although price was able to breach the market zone at 135.00 to the downside). There is a neutral bias on the market, which may continue for a few more days. However, when there is a breakout, which is imminent, it would most probably favor bulls, for the outlook on JPY pairs is bullish February.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
Traders’ Mindset: http://www.advfnbooks.com/books/insights/index.html
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