FX.co ★ Daily analysis of major pairs for December 3, 2014

EUR/USD: EUR/USD traded downwards on Tuesday, breaking below the resistance line at 1.2400. The resistance line is now an immediate barrier to any rallies that may be initiated by the bulls. Meanwhile, price may trend further downwards towards the support line at 1.2350.

USD/CHF: This pair traded upwards on Tuesday, breaking above the support level at 0.9700. The support level is now an immediate barrier to any pullbacks that may be initiated by the bears. Meanwhile, price may trend further upwards towards the resistance level at 0.9750. That is our long-term target.

GBP/USD:  It has now turned out that the rally that happened here on Monday gave a great opportunity to go short – for price came down seriously on Tuesday (by more than 110 pips). There is a great accumulation territory at 1.5600, which has been rejecting any movement below it for the past few weeks. Price is about to test that accumulation territory again, but it would require a great bearish force to breach to the downside.

USD/JPY: USDJPY has gone beyond our target at 119.00 – which is now a demand zone in the context of the extant uptrend. The uptrend will continue, even if it would be in a slow and steady manner. The next target to be reached by price is at the supply level of 119.50.  

EUR/JPY:  The bias on EUR/JPY remains bullish in the face of the current Bullish Confirmation Pattern in the market. The EMA 11 is above the EMA 56, while the RSI period 14 is above the level 50. Only long trades are now logical.