Daily analysis of major pairs for October 3, 2016
The EUR/USD has become neutral in the short and long terms. The market did nothing significant last week, save testing the resistance line at 1.1250 and the support line at 1.1150. A rise in momentum would force the market to go above that resistance line or below the support line, which may happen this week.
EUR/USD: The EUR/USD has become neutral in the short and long terms. The market did nothing significant last week, save testing the resistance line at 1.1250 and the support line at 1.1150. A rise in momentum would force the market to go above that resistance line or below the support line, which may happen this week.
USD/CHF: This currency trading instrument is bearish in the short-term, but bullish in the long-term. Further sideways movement is anticipated this week, which would culminate in the market moving seriously upwards or downwards in the week. A sharp fall of EUR/USD would result in a rally in the USD/CHF.
GBP/USD: In the 4-hour and daily charts, the outlook is bearish. The Cable is weak and in spite of the fact that price was caught in an equilibrium phase last week, price may breakout out lower, testing the accumulation territories at 1.2900, 1.2850 and 1.2800 eventually. The accumulation territory at 1.2950 has been tested and it would need to be tested again before price goes further lower. That accumulation territory is adamant; but since the outlook on GBP pairs is bearish for this month of October 2016 (except in a few instances when some pairs would showcase some forms of bullishness), further bearish movement is possible on the Cable.
USD/JPY: This pair is bearish in the long-term and bearish in the short-term. Price moved between the supply level at 102.00 and the demand level at 100.00. There is a need for price to go above the supply level or the demand level so that there could be a directional bias. That is exactly what is anticipated this week.
EUR/JPY: The situation around this cross pair is similar to that of the USD/JPY. The outlook is bearish in the daily chart, but neutral in the 4-hour chart. This week, a movement to the downside would result in a Bearish Confirmation Pattern, while a movement to the upside would threaten it. Since the outlook on EUR pairs is bearish for this month, the EUR/JPY has a high probability of going further south.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html
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