FX.co ★ Daily analysis of major pairs for January 5, 2017

EUR/USD: There is a bearish signal on the EUR/USD pair. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. This means a Bearish Confirmation Pattern in the market, and the current upwards bounce could end up being another opportunity to sell short at a better price.

USD/CHF: The USD/CHF pair went down lower on Wednesday, threatening the recent bullish bias in the market. It is possible for price to go lower and lower; and unless the psychological level at 1.0000 is breached to the downside, the bias would not turn completely bearish.

GBP/USD: This currency trading instrument is now trying to rally in the context of an uptrend. The rally may be checked at the distribution territories at 1.2400 and 1.2450. Normally, the outlook on the market remains bearish for this week, and the accumulation territories at 1.2200, 1.2150, and 1.2100 could be tested this week.

USD/JPY: This pair came down a bit yesterday, though the bullish bias in the market is still valid. Further downward correction may be experienced. Unless it is a correction of about 200 pips, the bearish outlook cannot be rendered invalid. Price has topped at 118.60 this week, and that would be the next target for the next several trading days.

EUR/JPY: This cross pair has been consolidating for a few weeks. Nevertheless, a closer look at the market reveals that bulls are still intent on driving price higher. There is a bullish signal in the market: The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50. Since the movement in the market would be determined by whatever happens to EUR, the supply zones at 123.50 and 124.00 might be reached soon.