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Daily analysis of major pairs for January 14, 2015

EUR/USD: This currency trading instrument still has the potential to continue trading further down in the context of the existing bearish trend. When the support line at 1.1750 is breached to the downside, it would ensure more southerly trip towards another support line at 1.1700.


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USD/CHF: This market is still in a bullish mode and the resistance level at 1.0200 is still being challenged (just as it was challenged unsuccessfully last week). A breach of that stubborn resistance level is a task that must be done by bulls; otherwise, the risk of a large pullback from here is high. The resistance level must not only be broken - the price must also close above it.


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GBP/USD: This is a bear market in spite of bulls' effort to push the price further up. Unless the price closes above the distribution territory at 1.5250, there cannot be any threat to the existing bearish outlook. The price is likely to dive further from this point.


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USD/JPY: Now, there is a clean Bearish Confirmation Pattern in this market, with the price below the EMA 56 and the RSI period 14 below the level 50. Given the current strength in the Yen, this market is expected to fall further, challenging the demand level at 117.00.


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EUR/JPY: This week, the EUR/JPY pair has dropped by over 150 pips, testing the demand zone at 138.50. That demand zone could be tested again and breached to the downside, enabling the price to reach another demand zone at 138.00.


5.pngThe material has been provided by InstaForex Company - www.instaforex.com