Daily analysis of major pairs for January 22, 2014

EUR/USD: In this market, since the EMA 11 is below the
EMA 56 and the price action is showing weakness of the market, it would be likelier
for the price to keep on going downwards. The upward swing of the Williams’ %
Range testifies to the good chance to go short when the price rallies slightly.

USD/CHF: В In this market, since the EMA 11 is above the
EMA 56 and the price action is showing stamina of the market, it would be
likelier for the price to keep on going upwards. The downward swing of the
Williams’ % Range testifies to the good chance to go long when the price falls
slightly.

GBP/USD: В In an awesome manner, this market continues to
go upwards. It must be noted that the GBP looks stronger than the USD while the
EUR looks weaker than it. Sometimes the GBP/USD and the EUR/USD go into
negative correlation with each other; and that is no longer a new thing. The
price may now reach the distribution territory at 1.6500. It could even break
it further upwards.

USD/JPY: Like the
EUR/JPY, this pair is also experiencing upswings and downswings, but the
probability of the price going up is high. One thing to note: should the price
go further higher, the movement is going to be limited.

EUR/JPY: In spite
of the upswings and downswings of the price, the bearish outlook on EUR/JPY
remains valid. Short-term rallies have been limited in the market and the bears
are determined. The demand zone at 141.00 is to be broken to the downside so
that the bearish run can continue.В В 

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