Daily Market Analysis for Major Pairs (January 31, 2017)

31 January 2017, 18:05
ap5m6
0
38

Here’s the market outlook: Content courtesy of Tallinex Limited https://www.tallinex.com

 Here is our latest market analysis update:

  • EUR/GBP rising inside intermediate impulse wave (3)
  • Next buy target – 0.8700

EUR/GBP continues to rise inside the intermediate impulse wave (3), which started earlier from the support zone lying between the pivotal support level 0.8450 (which reversed the price with the daily Japanese candlesticks reversal pattern Hammer at the start of January, as can be seen from the daily EUR/GBP  chart below) and the lower daily Bollinger Band. The active impulse wave (3) belongs to the longer-term upward impulse wave ③ from the start of December. EUR/GBP is expected to rise further to the next buy target at the resistance level 0.8700.

  • GBP/CHF falling inside minor impulse wave 3
  • Next sell target - 1.2180

GBP/CHF has been falling in the last few trading sessions inside the minor impulse wave 3, which started earlier – when the pair reversed down from the resistance zone lying between the resistance level 1.2630 (which reversed the earlier minor correction (ii) with the daily Japanese candlesticks reversal pattern Shooting Star), upper daily Bollinger Band and the 61.8% Fibonacci retracement of the previous sharp downward impulse 1 from the start of December. GBP/CHF is expected to fall to the next sell target at the support level 1.2180 (which reversed previous impulse 1).

  • GBP/JPY reversed from resistance zone
  • Next sell target – 138.00

GBP/JPY recently reversed down from the resistance zone lying between the resistance level 145.00 (which also previously reversed the price at the start of January), upper daily Bollinger Band and the 61.8% Fibonacci correction of the previous downward impulse (1). The downward reversal from this resistance zone created the daily Japanese candlesticks reversal pattern Evening Star – which marked the start of the active impulse weave (3). GBP/JPY is likely to fall to the next sell target at the support level 138.00 (which stopped the previous impulse wave (1)).

  • NZD/JPY reversed from strong resistance level 83.80
  • Next sell target – 82.00

NZD/JPY recently reversed down from the strong resistance level 83.80 (which also stopped the previous minor impulse wave 1 with the daily Evening Star in the middle of December). The resistance zone near the resistance level 83.80 was strengthened by the upper daily Bollinger Band. The latest downward reversal from the resistance level 83.80 created the daily Bearish Engulfing candlesticks reversal pattern. With the bearish divergence visible on the daily RSI indicator - NZD/JPY is expected to correct down further to the next sell target at the support level 82.00.


Dima Chernovolov
Currency Analyst
Tallinex Limited
The Jaycees Building, Stoney Ground
PO Box 362, Kingstown, VC0100
St Vincent and the Grenadines
https://www.tallinex.com



Privacy:You have been sent this email because of your existing relationship with Tallinex Limited - a company registered in St Vincent and the Grenadines (No. 22199 IBC 2014). We will send you similar updates periodically.


HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.

ADVISORY WARNING:Tallinex Limited provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects but does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of future results and Tallinex Limited specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Tallinex Limited expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never guarantee of future results.


Share it with friends: