Daily analysis of major pairs for October 9, 2017
The GBP/USD dropped by 320 pips last week, having dropped more than 480 pips since September 25, when the initial “sell” signal was generated. There is a huge Bearish Confirmation Pattern in the market, and further downwards movement is expected this week. There could, however, be a rally before the end of the week.
EUR/USD: Since September 25, the EUR/USD has lost roughly 200 pips. The current kind of the market situation favors selling on short-term rallies (as indicated by the recent price action). Price moved briefly below the support line at 1.1700 but closed above it on Friday. Once price turns south again, another clean opportunity would emerge, which would enable selling at slightly higher and better prices.
USD/CHF: This pair has been bullish for the past few weeks, moving briefly above the resistance level at 0.9850, and closing below it on Friday. The outlook on the market is bullish for this week, but the bullish movement would be limited as long as CHF is not that vulnerable. The ongoing bullishness also would be supported for some time by the weakness in the EUR/USD
GBP/USD: The GBP/USD dropped by 320 pips last week, having dropped more than 480 pips since September 25, when the initial “sell” signal was generated. There is a huge Bearish Confirmation Pattern in the market, and further downwards movement is expected this week. There could, however, be a rally before the end of the week.
USD/JPY: This trading instrument has been able to maintain its bullishness in spite of the ongoing equilibrium phase in the market. A movement above the supply level at 114.00 would affirm the long-term bullish bias, while a movement below the demand level at 111.00 would result in bearish bias. One of these two conditions would be met this week, since it is expected that momentum would soon go out of balance.
EUR/JPY: This cross is bullish in the long-term, but bearish in the short-term. Price did practically nothing last week, but a closer look at the market reveals that bears are subtly gaining upper hands, and they may push price lower this week, as it tests the demand zones at 132.00, 131.50 and 131.00. But that would not be serious enough to become a threat to the overall bullish bias.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
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