Daily Analysis of Major Pairs for March 28, 2016
EUR/USD: This pair has been bearish so far since last week. A movement below the support line at 1.1050 would easily render the recent bullish outlook invalid. It is expected that the EUR/USD pair would trend further south this week, so are most other EUR pairs.
USD/CHF: What is happening on this currency trading instrument is best called a rally in the context of a downtrend. But the rally could continue this week, owing to the expected loss of stamina on the EUR/USD pair and the fact that CHF could become weak this week (please watch CHF pairs). A movement above the resistance level at 0.9850 would result in an undisputed bullish outlook.
GBP/USD: This currency trading instrument plunged by 400 pips last week, almost testing the accumulation territory at 1.4050. There is a Bearish Confirmation Pattern in the chart and the EMA 11 is below the EMA 56. The RSI period 14 is below the level 50. All this is a bearish indicator and the price would move further downwards this week, reaching the accumulation territories at 1.4050 and 1.4000. The outlook for GBP pairs is bleak for the week.
USD/JPY: The perpetual bullish effort on the USD/JPY pair has already resulted in a "buy" signal. The price action on the chart subtly reveals some bullish propensity, although the market currently looks choppy. It is expected that the price would target the supply levels at 113.00 and 113.50 this week. It might even go beyond these targets.
EUR/JPY: The EUR/JPY pair moved sideways throughout last week, not going below the demand zone at 125.00, nor going above the supply zone at 126.50. A breakout is imminent this week, which would most probably favor the bulls, because the outlook for JPY pairs is bright for the week. When there is a rally, the supply levels at 126.50, 127.00 and 127.50 would be attained.
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