Daily analysis of major pairs for March 16, 2015

The Cable is a weak market right now. The market moved downwards by more than 300 pips last week, closing below the distribution territory 1.4750. The accumulation territories at 1.4700 and 1.4650 are now potential targets for the bears. While those accumulation territories may be tested, it is unlikely that the price would breach them to the downside this week.

EUR/USD: This pair has been so weak to the point that long trades do not make sense at the moment. The possibility of the EUR reaching parity with the USD is now very high. If the CAD, the CHF and the AUD could reach parity with the USD, why can’t the EUR reach parity with it? The bulls and the bears are fighting a serious battle around the great support line at 1.0500, and should the support line be breached to the downside, we may see the price testing another support lines at 1.0400 and 1.0300. The outlook for the EUR/USD is bearish indeed.

USD/CHF: Since the EUR/USD is weak, the USD/CHF would continue its upward journey for as long as the EUR/USD is weak. The price is now between the support level at 1.0000 and the resistance level at 1.0100. A breach above the resistance level at 1.0100 is very likely.

GBP/USD: The Cable is a weak market right now. The market moved downwards by more than 300 pips last week, closing below the distribution territory 1.4750. The accumulation territories at 1.4700 and 1.4650 are now potential targets for the bears. While those accumulation territories may be tested, it is unlikely that the price would breach them to the downside this week.

USD/JPY: This currency trading instrument is bullish in outlook – though there was no significant northward movement last week. On Friday, March 13, 2015, price closed at 121.39; on a bullish note. This week or next week, the probability of this instrument rallying is very high.

EUR/JPY: This is a bear market and it would continue to be weak as long as the EUR does not have any strength. Only an exponential stamina in the EUR could reverse the trend; or a strong weakness in the JPY itself.

Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments are closed

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Capital.com

• 

  Alice Hudson

• 

  Lawrence Gash

• 

  Anna Coulling