Daily Analysis of Major Pairs for May 6, 2016
EUR/USD: After testing the resistance line at 1.1600, the EUR/USD has gone down by almost 190 pips. This has become a threat to the recent bullish bias in the market, and a movement below the support line at 1.1300 would result in a clean bearish signal.
USD/CHF: After testing the support level at 0.9450, the USD/CHF has gone up by almost 230 pips. This has become a threat to the recent bearish bias in the market, and a movement above the support line at 1.1300 would result in a clean bullish signal. By then, a Bullish Confirmation Pattern would have been formed on the chart.
GBP/USD: After testing the distribution territory at 1.4750, the GBP/USD dropped by 270 pips, now below the distribution territory at 1.4500. This kind of perpetual reversal has already resulted in a bearish outlook on the market. The EMA 11 has crossed the EMA 56 to the downside as the RSI period 14 goes below the level 50.
USD/JPY: The USD/JPY traded negligibly higher on Thursday in the context of a downtrend. Unless the price goes above the supply level at 109.00 (which would require a serious rally), there cannot be an end to the current bearish bias. Right now, the rally that was seen yesterday would be an opportunity to sell short at a better price; unless otherwise indicated by the price action.
EUR/JPY: This cross pair has given way to gravity again, though not significantly, it was enough to show that the bears are still willing to push the price lower. This would be in conjunction with the existing bearish outlook on the market. The indicators on the 4-hour chart favor further southward journey. The price might reach the demand zones at 122.00 and 121.50 today or next week.