Daily analysis of major pairs for January 5, 2018

EUR/USD: This currency trading instrument was corrected lower on Wednesday, in the context of a short-term uptrend. But now, the price has assumed its northwards journey and it may reach the resistance lines at 1.2100, 1.2150, and 1.2200. There is an important support line at 1.2000, which a serious barrier to any bears' effort along the way.


USD/CHF: The bearishness on this currency trading instrument remains intact. In spite of the bulls' effort, the bearish signal is remains in place. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level of 50. There is a Bearish Confirmation Pattern in the market, and more southward movement is a possibility.


GBP/USD: The bias on GBP/USD is bullish. The bearish correction that was seen on Tuesday has proven to be a clean opportunity to buy long when the price was on sale, in the context of an uptrend. The market is trying to go upwards again, moving towards the distribution territory at 1.3600, which was previously tested. That is the initial target.


USD/JPY: This pair has rallied by 80 pips this week – in the context of an uptrend. Further rally would result in invalidation of the recent short-term bearishness, especially when the supply level at 113.50 is overcome. Should the price go lower from here, it would help restore the bearishness in the market. Today or early next week would reveal the true intent of the market.


EUR/JPY: The movements of major pairs are now getting interesting. For example, the EUR/JPY has maintained its bullishness this week, having gained 115 pips, despite the dip that was witnessed earlier this week. The price is now above the demand zone at 136.00, going towards the supply zone at 136.50.


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