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Sunday, October 5, 2014

Daily analysis of major pairs for October 6, 2014

Last week, the Cable dropped by over 270 pips, going below the distribution territory at 1.6000, and closing at 1.5971 on Friday (October 3, 2014). The Bearish Confirmation Pattern is now very strong and the price could test the accumulation territory at 1.5900 this week.   

EUR/USD:  This pair has continued to be weak, breaking the market line at 1.2550 to the downside and closing below it. This week, the price may easily target the support line at 1.2500: it may even go below it. However, there are also possibilities that attempted rallies may cause the price to reach the resistance lines at 1.2600 and 1.2650 respectively.


USD/CHF: As long as the USD is strong and as long as the EUR/USD is weak, this pair has nowhere to go except upwards. The pair moved upwards by over 170 pips last week; and it is now threatening to test the resistance level at 0.9700. Should the market remain strong enough, the resistance level could be breached to the upside, going towards another resistance level at 0.9750.

GBP/USD:  Last week, the Cable dropped by over 270 pips, going below the distribution territory at 1.6000, and closing at 1.5971 on Friday (October 3, 2014). The Bearish Confirmation Pattern is now very strong and the price could test the accumulation territory at 1.5900 this week.  

USD/JPY:  This is a bull market, and the sharp but transitory drop that occurred in the market last week simply gave a clean opportunity to go long when things when on sale and in the context of an uptrend. As long as the Greenback is strong, this currency trading instrument would be going upwards. It may reach the supply level at 110.50 this week.                                                                                                                                                  
EUR/JPY:  This market is weak because of the weakness in the EUR itself. Further bearish move may cause the price to test the demand level at 136.50. On the other side, a rally may happen this week, taking the price towards the supply zone at 138.50.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group




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