Daily Analysis of Major Pairs for March 23, 2016
EUR/USD: The bullish outlook on this pair is now in a precarious situation. The market could continue going downwards and there is a possibility that the bears might come in and push the price further downwards. The EUR could be seen weakening versus some majors this week.
USD/CHF: There is a Bearish Confirmation Pattern on the USD/CHF chart. The EMA 11 is below the EMA 56 and the Williams' % Range period 20 is in the oversold region. This week would see the next direction in the market, which would most probably favor the bulls, for the EUR/USD pair (which is negatively correlated to USD/CHF) might drop this week.
GBP/USD: This currency trading instrument traded lower on Monday and Tuesday, thereby rendering the recent bearish bias invalid. Since the beginning of this week, the price has come down by 250 pips (the bearish trend is visible on most GBP pairs), testing the accumulation territory at 1.4200. This is the territory at which long trades would no longer be rational in the market. Further bearish movement is anticipated.
USD/JPY: The USD/JPY continued to move in a bullish mode on Tuesday – something that started on Monday. It is expected that the price would move upward by at least 100 pips today and tomorrow, which would render the extant bullish bias invalid. By then, there would be a new Bullish Confirmation Pattern in the chart.
EUR/JPY: Although things are currently volatile here, the EUR/JPY pair seems to be ready to go further upwards. The EMA 11 is above the EMA 56 whereas the RSI period 14 is above the level 50. It is likely that the market would go above the supply zone at 126.00, starting a clear directional movement, which would happen this week. The movement would most probably favor the bulls, for the outlook on JPY pairs is bullish this week.
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