Daily analysis of major pairs for December 18, 2017

EUR/USD: The EUR/USD made some bullish effort last week, but the further rally was rejected when the resistance line at 1.1850 was tested. Since then, the price has gone down by 100 pips, now almost below the support line at 1.1750. Further bearish movement is expected this week as price goes towards another support line at 1.1700.


USD/CHF: This pair is bearish in the short-term, but neutral in the long-term. The only factor that would help push the market upwards is a continuous weakness in the EUR/USD. Another factor that would help is the fact that, the Greenback is expected to be strong this month, and that is already visible in some pairs.


GBP/USD: This market is consolidating at best, and there is no directional, perpetual movement at the present. Last week, the market reached the distribution territory at 1.3450 and the accumulation territory at 1.3300. Either of these boundaries would be breached this week, as price assumes a directional movement.


USD/JPY: There is a Bearish Confirmation Pattern in the short-term (on the USD/JPY). Price consolidated on Monday and Tuesday and then dropped 150 pips, to test the demand level at 112.00. There has been an upward bounce since then, but the market would come down again to test that demands level, and possibly breach it to the downside.


EUR/JPY: This currency cross is quite choppy and without any direction on the higher time horizon. This kind of directionless scenario has been going on for more than two months and it seems to just be the beginning unless there is a 300-pip movement to the upside or to the downside, which would result in a directional bias.


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