FX.co ★ Daily analysis of major pairs for February 8, 2016

EUR/USD: Owing to the surprising and unexpected stamina in the USD, this pair rose upward by over 400 pips last week. In the 4-hour chart, the EMA 11 is above the EMA 56, while the Williams' % Range period 20 is not far from the overbought region. Even the bearish correction witnessed last Friday was merely a sale in the context of a downtrend, for the price might turn further upwards targeting the resistance lines at 1.1250 and 1.1300.

USD/CHF: From a high attained on January 29, 2016, the USD/CHF pair dropped by 500 pips, testing the support level of 0.9900 last week. This price action has resulted in a Bearish Confirmation Pattern in the chart, which might enable the price to reach the support levels of 0.9850 and 0.9800 this week.

GBP/USD: From a low reached on Friday, January 29, 2016, this currency trading instrument moved upwards by 500 pips, testing the distribution territory of 1.4650. However, the price came down by 200 pips on February 5, 2016, underlining the precarious nature of the GBP. While the GBP is strong against the USD, it is weak against other currencies (GBP/CHF, GBPCAD, etc.), since the outlook on GBP pairs remains bearish for the month of February. A further southward movement of 200 pips could put an end to the extant bullish bias.

USD/JPY: The USD/JPY pair dropped by roughly 500 pips last week testing the demand level of 116.50. A massive drop was partly due to the perceived weakness in USD, and bearish movement might continue this week targeting the demand levels of 116.00 and 115.50. Amid this, long trades are not recommended until bulls regains control in the market.

EUR/JPY: Unlike most other JPY pairs, the EUR/JPY pair has not moved significantly down. In fact, the bias is bullish in the cross as long as the EUR is strong. The outlook for JPY pairs is bullish for this month, and therefore weak JPY pairs such as GBP/JPY, AUD/JPY and NZD/JPY might also end their southward journeys and move upwards (this week or next week). EUR/JPY might go further upwards and pare its last week's the losses.