Daily Analysis of Major Pairs for July 4, 2016
EUR/USD: This pair went upwards by 150 pips last week in a context of a downtrend. A movement of another 200 pips to the upside would result in a Bullish Confirmation Pattern. However, since the outlook on this pair is bearish for this week, price could experience another smooth bearish journey, which could turn out to be favorable to bears.
USD/CHF: The USD/CHF pair made a faint bullish effort last week, testing the resistance line at 0.9800, after which price bent downwards in a slight bearish correction. There is a precarious bullish signal on the 4-hour chart, but price needs to go further upwards so that the bullish signal is still valid. A continuous bearish correction could cancel the bullish signal.
GBP/USD: This trading instrument did not display any bullish or bearish domination last week, though everything remains in the context of a downtrend. Bears might continue proving their stamina, because the outlook on the market (and other GBP pairs), is bearish for this week. The accumulation territories at 1.3100 and 1.3050 are vulnerable.
USD/JPY: The USD/JPY pair only moved sideways last week, and the chances of a rising momentum are slim this week. The outlook on the market, as well as other JPY pairs, is bearish for this week and this month. Bears could thus target the demand levels at 102.00 and 101.50 this week.
EUR/JPY: This cross went upwards by 250 pips last week, but the bearish bias on the market remains valid. A northward movement of 300 pip would result in a Bullish Confirmation Pattern, while a southward movement would simply emphasize the extant bearish bias.