Daily analysis of major pairs for March 26, 2018
Daily analysis of USD/CHF for March 26, 2018
The USD/CHF may assume a directional movement this week. In the short-term, this pair is bullish. Since the support level at 0.9200 was tested in February 16, 2018, price has rallied by over 350 pips, moving briefly above the resistance level at 0.9550. The market has been corrected lower since then, closing below the resistance level at 0.9500.
A rally from here would save the bullish bias; while a plunge from here would render it invalid. Nonetheless, the market is more likely to go upwards as a result of a bearish outlook on EURUSD. A Bullish Confirmation Pattern may be formed in the market.
Daily analysis of USD/JPY for March 26, 2018
The USD/JPY has been going southwards. The pair traded southwards last week, to corroborate the presence of bears. Since January 8, 2018, price has lost 830 pips. It lost 170 pips last week, after testing the supply level at 106.50. Since there is a huge Bearish Confirmation Pattern in the market, price can still reach the demand levels at 104.50, 104.00 and 103.50 before the end of this week.
Price does not move in a straight line, and therefore, a rally may occur along the way, but it should not be something that would override the extant bearish outlook on the market. A rise in momentum is expected.
Daily analysis of EUR/JPY for March 26, 2018
The conditions in the market is quite choppy. Although the market is choppy, the bearish trend has been maintained. Price has been going southward since February 5, having lost almost 800 pips since then. Last week, there was a rally attempt in the context of an uptrend, which was halted once the supply zone at 131.50 was tested.
Further upwards movement was effectively prevented. The market shed 250 pips following that, to test the demand zone at 129.00, and closed below the supply zone at 129.50. The expected weakness in EUR, as well as the bearish outlook on the market, may enable the demand zones at 129.00, 128.50 and 128.00 to be tested this week.