FX.co ★ Daily analysis of major pairs for December 1, 2015

EUR/USD: The EUR/USD merely consolidated to the downside in the context of a downtrend. The support line at 1.0550 would be tested soon and it could even be breached to the downside. The support line at 1.0500 is thus the potential target for the week.

USD/CHF: Since going above the big support level at 1.0000, this pair has moved upwards by 300 pips, testing the resistance level at 1.0300. One good method for dealing with this pair is to buy on dips in the context of an uptrend (which is happening right now), since the outlook for USD remains bullish. A further bullish journey is possible.

GBP/USD: The cable simply performed a shallow upward bounce on Monday, while the outlook remains bearish. Yes, it is highly possible that the current bearish bias would be sustained, because the outlook on GBP/USD (including GBP pairs) is gloomy for December 2015. The price is likely to drop further by 150 pips minimum.

USD/JPY: The USD/JPY pair has now moved above the demand level of 123.00. There is a highly probability that the price would reach the supply level of 123.50; and in case this happens, the bullish signal would have become stronger in the market. Further bullish movement is expected in the market.

EUR/JPY: Yesterday, there was not much activity on this cross. There is still a clear Bearish Confirmation Pattern in the market, as long as the EUR is weak. Any rallies that are witnessed in this market would merely signal short-selling opportunities. Unless the JPY loses strength significantly, long trades are not rational.