Daily analysis of major pairs for December 28, 2015

The USD/JPY had trended nicely downwards last week. The price has moved down by 110 pips, now below the supply level at 120.50, and going towards the demand level at 120.00. There is a very strong Bearish Confirmation Pattern in the chart; plus it is likely that the price would go further south when momentum returns to the market.

EUR/USD: Last week, this pair closed at 1.0952, on a slight bullish note. There may not be a serious moment in the market this week, owing to “thin” trading activity, but we could see surprise movements on some EUR pairs (like EURNZD, EURAUD and EURCAD). On the EUR/USD, there is likelihood that the resistance lines at 1.0950 and 1.0000 would be reached within the next several trading days.

USD/CHF: This market merely moved sideways last week, with no significant journey to the upside or to the downside. There could be some movement in the market this week, but nothing extraordinary is expected. However, it is very much likely that momentum would return to the market in the first week of January 2016.

GBP/USD: What has happened so far on the Cable is what can be rightly called a rally in the context of an uptrend. The price has been going upward gradually since last week, while the outlook on the market remains bearish. Only a movement above the distribution territory at 1.5050 would render the bearish outlook invalid; otherwise, the current rally would be logically taken for another short-selling opportunity.

USD/JPY: The USD/JPY had trended nicely downwards last week. The price has moved down by 110 pips, now below the supply level at 120.50, and going towards the demand level at 120.00. There is a very strong Bearish Confirmation Pattern in the chart; plus it is likely that the price would go further south when momentum returns to the market.

EUR/JPY: The upwards bounce we witnessed last week proved to be an opportunity to sell short. The price has come down after that, trying the demand zone at 131.50 – which might be breached to the downside soon.

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