Daily Analysis of Major Pairs for April 4, 2016
EUR/USD: This pair moved upwards by roughly 300 pips last week, but the bulls met a strong opposition around the resistance line at 1.1400. Owing to the bullish signal given by the indicators on the 4-hour chart, the bulls might be able to push the price beyond the resistance line, but a persistent northward journey should not be expected. There is a possibility of a large pullback this week.
USD/CHF: This pair went in an opposite direction to EUR/USD. There is a Bearish Confirmation Pattern on the chart: The EMA 11 is below the EMA 56, while the Williams' % Range period 20 is in the oversold region. Further southward movement is possible, though there could also be a rally this week.
GBP/USD: From March 28 – 30, the Cable rose and tested the distribution territory at 1.4450. The bulls were unable to push the price beyond that territory and this resulted in a bearish correction of 250 pips, as the price closed at 1.4228 last Friday. While further bearish correction is not ruled out, a rally is a great possibility, because the outlook on GBP is bright for the month of April 2016. This strength would be visible on most GBP pairs.
USD/JPY: This currency trading instrument went downwards last week, closing below the supply level at 112.00. The next targets are around the demand levels at 111.50 and 111.00, which would be attained this week. Only a situation in which the yen is very weak can cause a rally here. After all, it is anticipated that JPY pairs would become weak around the end of April 2015.
EUR/JPY: The EUR/JPY pair went upwards last week, reaching the supply zone at 128.00. The bulls were unable to push the price beyond that supply level and that caused a shallow correction we are currently looking at. There is a Bullish Confirmation Pattern in the market, and it is possible that another leg of the bullish journey would begin, which would cause a break above that supply level at 128.00.
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