Daily analysis of major pairs for July 4, 2017

EUR/USD: The EUR/USD traded lower yesterday, and it has continued doing so today. However, the major bias on the market remains bearish, owing to the strong northwards breakout that was seen last week. There cannot be a change in the bias on the market (to bearish), as long as price does not go below the support line at 1.1200.

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USD/CHF: Since the beginning of this week till now, the USD/CHF has gone upwards by more than 70 pips, against the dominant bearish bias. Price is now above the support level at 0.9650, going towards the resistance level at 0.9700. As soon as the price goes above the resistance level at 0.9800, the bearish bias would be over.

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GBP/USD: Since the beginning of this week, the Cable has been gradually corrected downward. It is possible that the price would continue going upwards this week (owing to the dominant bullish outlook), but the upwards movement would not be much, as a result of a bearish outlook on GBP pairs for this week and for the month of July 2017.

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USD/JPY: The USD/JPY made further bullish movement on Monday, but it is now engaged in a shallow bearish correction, which may turn out to be another good opportunity to go for a short-term bullish signal. There is a Bullish Confirmation Pattern in the 4-hour chart, and a further bullish movement is a possibility (although the outlook on JPY pairs is bearish for this month).

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EUR/JPY: Since Monday till now, the EUR/JPY cross has not done much, though a bullish signal remains in place. Short trades are not currently advised here, owing to a big Bullish Confirmation Pattern in the market. Nonetheless, there would soon be a deep correction in the market – as a result of the bearish outlook on JPY pairs for July – and that is when short trades would make some sense.

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