Daily analysis of major pairs for May 7, 2018
Daily analysis of USD/CHF for May 7, 2018
USD/CHF
This pair has normally been going upwards as EURUSD is going downwards. Price has gained over 800 pips since February 16 (it gained 130 pips last week). The great psychological level at 1.000 has eventually been reached and a lot of activity has started around that level, as bears are struggling to prevent bulls from pushing price above the level.
USD is supposed to continue being strengthened. However, bulls will eventually win the struggle, and enable price to stay above the psychological level at 1.0000, as another resistance level at 1.0050. The USD reigns.
Daily analysis of USD/JPY for May 7, 2018
USD/JPY
The bias on the USD/JPY is bullish, but the trend is in a precarious position. Price did not go upwards significantly last week, neither did the bearish correction that followed help the matter. Once the supply level at 110.00 was tested, price got corrected by 100 pips, moving briefly below the demand level at 109.00 and then closing above it on Friday.
Since the bullish bias is in a precarious situation, any movement below the demand level at 108.00 will result in a clear bearish signal. A movement to the downside is very much likely this week.
Daily analysis of EUR/JPY for May 7, 2018
EUR/JPY
This EUR/JPY cross has dropped by 300 pips since April 26. Roughly 250 pips were shed last week, owing to the weakness in EUR and a show of energy in JPY. There is a huge Bearish Confirmation Pattern in the market, and price is expected to continue going southwards, owing to the bearish outlook on JPY pairs this week.
The EUR is weak and the JPY is strong, and therefore, long trades are not recommended until it is clear that the situation in the market has changed. The demand zones at 130.00, 129.50 and 129.00 would be reached.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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