General analysis about forex market: 9th January – 14th January

GBPUSD technical analysis

The Great Britain pound started its bullish recovery in the market after hitting the critical support level at 1.22042.This is the second bullish recovery attempt by this pair after the Brexit event in the global economy. During the Brexit event the great Britain pound suffered an extensive loss in the global economy and hit a record low in the market at 1.18607.The first bullish attempt by this pair failed after hitting the critical resistance level at 1.27617.From that level, the sellers took control of the market and pushed the pair towards its nearest support level in the market. However, the pair managed to show a decent bullish momentum in the last week after hitting 1.22042 level in the market and secured 1.24307 level in the market. But on the last Friday, the average hourly income of the U.S economy was significantly great and it pushed the sterling lower in the global economy prior to the weekend closing.

If the critical support level at 1.22042 level manages to restrict the bearish pressure in the market then we will see another sharp rise in the GBPUSD pair in the upcoming week. The first initial bullish target for the GBPUSD pair is at the critical resistance level at  1.24307.This level is going to provide a significant amount of selling pressure to the pair but if the pair manages to breach this level then we will see a nice decent bullish move in the pair towards the next critical resistance level at 1.26263.This level is going to provide a significant amount of selling pressure to the GBUSD pair and most of the professional price action traders will be looking for bearish price action signal at that resistance level since the 100 days daily SMA also coincides with the horizontal resistance level. However, if the support level at 1.22042 fails to restrict the bearish pressure in the market then we will see a sharp drop in the price towards the next critical support level at 1.20688.Considering all the parameter the overall bias remains slightly bullish for the GBPUSD pair and we will look for buying opportunity until the failure of the critical support level at 1.22042 in the market.

USDCAD technical analysis

The USDCAD pair falling on the ground since the price of oil was increasing due to recent oil cap production by the OPEC. Most of the leading oil producing countries in the world have decided to limit their current production of oil in the global market so that the current oversupply problem mitigates in the energy sector. In the last Friday, the USDCAD pair sharply fell in the market and found a decent support after hitting the long-term bullish trend line support at 1.31757.Most of the professional price action traders are cautiously waiting to enter long in the USDCAD pair since the pair has formed a nice doji near the trend line support zone. Professional price action traders will go long into this pair with the bullish confirmation candlestick in the daily chart. However if the trend line support fails to restrict the bearish move of the USDCAD pair then we will see a large fall towards the next critical support level at 1.20773.this level is going to provide significant amount of support to the USDCAD pair but a clear break of that level will bring long term bearish reversal into this pair.

Considering the bullish trend line support on the daily chart, if the pair manages to hold this support level then we will see a decent rise in the USDCAD pair towards the first critical resistance level at 1.33580.this level is going to bring some selling pressure to USDCAD pair but if the pair manages to break out this level on a daily closing then we will see another sharp rise in the pair. The next initial bullish target for the USDCAD pair will be the critical resistance level at 1.35923 in the market. This level is going to provide a significant amount of selling pressure but a clear break of the price above that level will bring strong bullish trend in the market. Considering the technical parameter the overall bias remains strongly bullish in the USDCAD pair.

EURJPY technical analysis

The EURJPY pair has formed a triangle like structure in the daily chart and the pair trading within a confined region. The sloping resistance level is at 123.464 and the support is now at 122.180.Those who are trend trades are currently waiting for the bullish breakout of the EURJPY pair. But meanwhile, the range traders have made a decent profit by trading the triangle support and resistance level in the daily chart. However, the price is now too close to the breakout level and the expert is expecting a bullish breakout in this pair. If the pair manages to breach the critical resistance level 123.464 in the market then we will see a strong bullish move in the pair targeting the next critical resistance level at 126.413.

On the other hand in case of bearish breakout the first initial bearish target for the EURJPY pair will be the critical support level at 120.10 level. Those who are aggressive trader can buy the triangle support zone with bullish rice action confirmation signal in the market, on the other hand, the conservative traders will wait for the bullish breakout of the triangle resistance. Considering all the technical parameter the EURJPY pair is most likely to exhibit breakout in the upward direction in the upcoming week.

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