Daily Analysis of Major Pairs for April 6, 2016
EUR/USD: Since the EUR/USD pair tested the resistance line at 1.1400, it has been difficult for the price to go above that line. The bulls have continued battering that line of defense (an action that started last week). The resistance line has now become a formidable barrier that must be breached to the upside so that the uptrend could continue; otherwise a large pullback might occur.
USD/CHF: The USD/CHF pair has been consolidating to the downside so far this week. The support level at 0.9550 has been tested and it would soon be breached to the downside. This is because the outlook on the market is bearish for this week: as long as the EUR/USD pair continues to show its bullishness, the USD/CHF pair would remain under bearish pressure.
GBP/USD: The Cable went downwards on Tuesday, which led to a bearish signal on the 4-hour chart. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. The price could go on to reach the accumulation territories at 1.4100 and 1.4050. As long as the price does not go above the distribution territory at 1.4350, the bearish signal would be valid.
USD/JPY: The bearish journey of the USD/JPY pair keeps getting stronger and stronger. Since the beginning of this week, the price has moved south, testing the demand level at 110.00. That demand level would soon be breached to the downside, as bears target another demand level at 109.00, which could be tested this week.
EUR/JPY: There is a "sell" signal on the EUR/JPY pair and there is a valid Bearish Confirmation Pattern on the 4-hour chart. The EMA 11 is below the EMA 56; and the RSI period 14 is below the level 50. The next targets to be reached by bears are the demand zones at 125.00 and 124.50.
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