Daily Analysis of Major Pairs for March 31, 2016
EUR/USD: The EUR/USD pair broke further upwards on Wednesday, testing the resistance line at 1.1350. There is a Bullish Confirmation Pattern on the 4-hour chart. The EMA 11 is above the EMA 56, while the Williams' % Range period 20 is in the overbought region. While the probabilities of short-term dips cannot be ruled out, it is assumed that further northward movement is possible. Some fundamental figures are expected today and they could have an impact on the markets.
USD/CHF: This pair was able to test the support level at 0.9600 yesterday, owing to the attacks the pair received from a strong EUR/USD and another strong CHF. The EMA 11 is below the EMA 56, while the Williams' % Range period 20 is not too far from the oversold region. While the probabilities of short-term rallies cannot be ruled out, it is assumed that the aforementioned support level would be breached to the downside.
GBP/USD: The Cable has continued to journey upwards. The price has gone upward by 330 pips this week, testing the distribution territory at 1.4450. The bulls would be able to push the price above that distribution territory, but not without giving a fight against the bears. The next targets are the distribution territories at 1.4500 and 1.4550.
USD/JPY: There is a clear Bearish Confirmation Pattern on the USD/JPY 4-hour chart. The price nearly tested the demand level at 112.00, before the current shallow bounce in the market. That demand level could be broken to the downside as the price moves further south, targeting another demand level at 111.00.
EUR/JPY: This cross pair has been able to maintain its bullish stance so far, though there is nothing significant in the movement. The price has tested the supply zone at 127.50 and is trying to breach that supply zone to the upside. In case the attempt proves to be successful, the bulls would target the supply zone at 128.50.
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