Daily analysis of major pairs - 20/01/2014

This week, the USD/CHF should be able to trade above the market level at 0.9100. The ultimate target for this week is the resistance level at 0.9200.

EUR/USD: This market has been bearish and it would continue to be so this week. We are watching the support lines at 1.3500 and 1.3450, which are the successive targets for the bears. Meanwhile, the resistance lines at 1.3600 and 1.3650 should act as barriers to any possible bullish threats.

USD/CHF: This, week the USD/CHF should be able to trade above the market level at 0.9100. The ultimate target for this week is the resistance level at 0.9200. The Bullish Confirmation Pattern on the chart reveals that the bias should go on being bullish in favor of buyers.

GBP/USD: This pair has been ‘reluctantly’ bearish, and it experienced a massive rally on Friday before the market closed at 1.6422. The question now is: Would this pair go upwards or downwards this week? To get an answer, one would need to wait for a clearer signal in the chart. The price would have to go above the distribution territory at 1.6500 before a bullish bias can be confirmed. Likewise, the price would have to go below the accumulation territory at 1.6300 before a bearish bias is confirmed.

USD/JPY: This currency trading instrument traded lower at the beginning of the last week and later rallied massively before moving sideways. The price action reveals that it is possible for the price to continue going upwards.

EUR/JPY: This cross started the last week in a bearish mode, and then experienced a bullish challenged before going bearish again. The price should cross the demand zone at 141.00 to the downside, going towards another demand zone at 140.00.

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