Daily analysis of major pairs for January 13, 2014

The EUR/JPY has shown its inability to trade higher than the supply zone at 143.00, in spite of testing it several times last week. Should the price then fall below the demand zone at 142.00, it could mean the beginning of a new bearish trend.

EUR/USD: After moving sideways for most of last week, this pair was able to break out upwards, thus rendering the recent bearish bias almost invalid. The bearish bias is not yet completely invalid. What would make it invalid is a situation in which the pair trades above the resistance line at 1.3700, which would have led to a clean bullish bias by then.

USD/CHF: After moving sideways for most of last week, this pair was able to break out downwards, thus rendering the recent bullish bias almost invalid. The bullish bias is not yet completely invalid. What would make it invalid is a situation in which the pair trades below the support level at 0.9000, which would have led to a clean bearish bias by then.

GBP/USD: Interestingly the Cable and the EUR/USD seem to be going into a positive correlation with each other. This means that both are making attempts to go northward. The Bullish Confirmation Pattern on the Cable has been existing since last week. The price should be able to close above the distribution territory at 1.6500 this week.

USD/JPY: This currency trading instrument closed at 104.15 on Friday, after forming another bearish signal. I think it is better to begin to look for ways to sell rallies in this market, for the recent bullish signals on it have been showing signs of failure. The price has not been able to trade above the supply level of 105.50.

EUR/JPY: The EUR/JPY has shown its inability to trade higher than the supply zone at 143.00, in spite of testing it several times last week. Should the price then fall below the demand zone at 142.00, it could mean the beginning of a new bearish trend. This view is supported by the Bearish Confirmation Pattern in the chart.

Eye-opening trading lessons: http://www.harriman-house.com/experttraders

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Currencies Direct

• 

  Susan Marmor

• 

  Lee Wild

• 

  Robbie Burns