Daily analysis of major pairs for January 29, 2016

EUR/USD: This currency trading instrument has succeeded
in generating a “buy” signal. Short trades are not currently logical according to the price action in the chart. The price could go further north, targeting the
resistance lines at 1.0000 and 1.0050. A breakout above the resistance line of 1.0000 would particularly be remarkable, because it is a psychological line.

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USD/CHF: The USD/CHF pair moved sideways yesterday trading in a weakening bullish trend. The bullish effort devoted to the EUR/USD pair has
been affecting the USD/CHF pair (which is negatively correlated to the EUR/USD). In
case the EUR/USD pair goes further upwards, USD/CHF might plummet.

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GBP/USD: There has been a persistent bullish effort on
this pair – against all odds. The bullish effort has been persistent enough to
become a real threat to the extent bearish outlook. In fact, an upward movement
of 200 pips would lead to a new bullish signal. A Bullish
Confirmation Pattern is likely to be formed in the market in the market.

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USD/JPY: The bullish signal remains
valid in this market, though the price has not gone significantly upwards. The price is above
the EMA 56 and the RSI period 14 is above the level of 50, which means that there
is a high possibility that the price could go further upwards when momentum
returns to the market.

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EUR/JPY: The EUR/JPY pair is trading in a clear uptrend. It has moved up by 200 pips this week getting above the demand zones of 128.50, 129.00, and 129.50. Our target for this week has already been met at the supply zone of 130.00, but the price is clearly ready to move far beyond this supply zone. So, the next targets are the supply zones of 130.50 and 131.00, which the pair might attain today or next week.

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

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