Daily analysis of major pairs for July 29, 2014

EUR/USD: This is a bear market, and in contrast to what
the USD/CHF is doing, the market is going downwards. The price is below the resistance
line at 1.3450, going towards the support line at 1.3400. The aforementioned resistance
line should serve as obstruction to any short-term rallies on the way.

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USD/CHF: The
current consolidation phases in the markets are supposed to be short-lived because
momentum would return to the markets. For instance, the USD/CHF could retest
the resistance level at 0.9050. The bias on the pair is bullish and this is
expected to continue. When the resistance level is broken to the upside, the
next target would be another resistance level at 0.9100. This is a point at which
the price could turn downwards later. But right now, enjoy the bullish ride.

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GBP/USD:  The Cable is
currently weak – with the Bearish Confirmation Pattern in the market. The
market is below the distribution territory at 1.7000. This distribution
territory is supposed to serve as an impediment to any rallies along the way (which
could jeopardize the extant bearish bias). When the bearish bias continues, the
accumulation territory at 1.6950 would be tested.

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USD/JPY:  The USD/JPY is
currently a strong currency trading instrument. However, the bullish run would
be limited and intraday bulls might want to take their profits at the supply
level of 102.00.

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EUR/JPY:  Like a few other JPY pairs, this market is
weak and the weakness is supposed to continue. The market could test the demand
zone at 136.50 again.

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USD/CAD intraday technical levels and trading recommendations for July 28, 2014

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Since the USD/CAD pair failed to show enough bullish momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was established.

The USD/CAD pair found solid resistance around 1.0910-1.0950 that was able to resume the ongoing bearish momentum when bearish breakout took place on the bearish side.

Bearish projection targets were visited at 1.0725 and 1.0685 respectively (the lower limit of the ongoing bearish channel).

As expected, bullish price action was expressed at retesting 1.0630 which is the origin of the previous bullish impulse initiated in December 2013 and the backside of the upper limit of the broken 4H channel.

That’s why, a valid BUY entry was suggested. Expected targets were located around 1.0750 and 1.0820. Stop Loss should be advanced to slightly below 1.0700.

The bulls should be conservative with their targets and tight Stop Loss as the bulls have reached the upper limit of the ongoing movement channel.

Price Zone of 1.0760-1.0775 remains the nearest support to meet the pair. It’s the upper limit of the recent congestion zone that got broken recently. 

A valid buy entry can be taken at retesting.

The material has been provided by InstaForex Company – www.instaforex.com

GBP/USD intraday technical levels and trading recommendations for July 28, 2014

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Bullish breakout above the DAILY bearish channel took place exposing the price levels around 1.6985, 1.6900, and 1.7000 as projection targets.

Bullish pressure was once applied as a trial to break through the upper limit of the 4H movement channel. However, lack of follow-through existed as bullish pressure being applied was not enough to ensure success of the bullish breakout.

On the other hand, Intraday resistance was established around 1.7150-1.7190. A short-term SELL position was suggested in the previous articles with SL located just above 1.7190.

The price levels of 1.7050 failed to provide enough support for the pair. Hence, the bears had potential bearish target around 1.6970 that was hit shortly after.

The GBP/USD pair remains supported by DAILY Levels around 1.7000 where a previous prominent top was established in May ( an important psychological support as well ).

The price level of 1.6920 is the next support level to meet the pair in case the bears managed to fixate below price zone of 1.6970-1.7000. 

The material has been provided by InstaForex Company – www.instaforex.com

Intraday technical levels and trading recommendations on GBP/JPY for July 28, 2014

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Recent bottoms were established around 169.55 and 171.05 (corresponding to the lower limit of the depicted bullish channel).

These bottoms prevented further bearish decline each time the pair visited them and provided enough buying pressure to keep pushing higher.

The bulls have reached the upper limit of the depicted channel located roughly at 175.35 where bearish pressure was expressed obviously.

Since then, the GBP/JPY pair has been down-trending approaching 50% Fibonacci Level around 172.45.

The bears need to keep their 4H closure below 172.45 in order to pursue towards further bearish targets.

Note the bullish pressure being expressed at 172.60 when the bears challenged previous daily low around 172.70. 

Prominent bullish daily closures are manifest on the chart so SELLERS should be conservative with their targets. 

However, if the bears manage to breakdown zone between 172.45 – 171.80, sellers should extend their targets towards 171.00 initially.

The material has been provided by InstaForex Company – www.instaforex.com