FX.co ★ Daily analysis of major pairs for February 5, 2016

EUR/USD: The EUR/USD pair has moved upward by 380 pips this week, going above the support lines of 1.1100, 1.1150, and 1.1200. There is a great possibility that the price would continue moving upwards today and next week owing to the Bullish Confirmation Pattern in the chart. Some fundamental figures are expected today and they would have an impact on the market.

USD/CHF: the pair has dropped by 290 pips so far this week going below the resistance levels at 1.0050, 1.0000, and 0.9950. There is a great possibility that the price would continue moving downwards today and next week owing to the Bearish Confirmation Pattern in the chart. A breakout below the psychological level of 1.0000 indicates that this pair might have a tough time going further upwards.

GBP/USD: the cable remains in a bullish mode, irrespective of a fact that there is now a range movement following a test of the distribution territory around 1.4650. The price is above the EMA 11, which in its turn is above the EMA 56. The RSI period 14 is above the level of 50, and thus further bullish movement is possible in this market.

USD/JPY: this currency trading instrument has plunged by 470 pips this week going further and further south owing to current weakness in the USD. In fact, the price is now below the EMA 56, as the RSI period 14 is below the level of 50. The impact of the US employment figures, due to be released today, would surely be visible and it may dictate what happens to the market next week.

EUR/JPY: Unlike most other JPY pairs, the EUR/JPY pair has not moved significantly down. In fact, the cross is trading on a bullish bias and as long as the EUR is strong a pullback may not happen in the market. The price is expected to reach the supply zones of 132.00 and 132.50.