Murrey Math Lines: EUR/USD, GBP/JPY
|Analysis for January 16th, 2017
EURUSD, “Euro vs US Dollar”
The EUR/USD pair failed to fix above the 7/8 level, which means that it may resume moving downwards to reach the closest target at the 6/8 one. To confirm this scenario, the market hast to stay below the H4 Super Trend.
At the H1 chart, the pair is moving between Super Trends. Last week, the price rebounded from the 7/8 level and stopped its ascending movement. As a result, in the nearest future the market may fall towards the 4/8 level.
GBPJPY, “Great Britain Pound vs Japanese Yen”
In case of the GBP/JPY pair, we can see a large gap to the downside. The price reached the 0/8 level, that’s why I closed one of my sell orders. I’m still holding one more trade, because, after completing the local correction, the market may resume falling towards the -1/8 level.
As we can see at the H1 chart, the pair is trying to stay inside the “oversold zone”. However, during the day the price may start a new correction and test the 1/8 level. If later the price rebounds from this level, the market may start a new descending movement.
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