FX.co ★ Daily analysis of major pairs for February 10, 2016

EUR/USD: The EUR/USD pair is in a strong trend. Since January 29, 2016, it has gone up by 500 pips. From the low hit on Monday, February 8, 2016, it has come up by 220 pips. The perceived weakness in the USD coupled with the ongoing strength in the EUR (as evident on EUR pairs) is responsible for the strong bearish trend. The resistance line at 1.1300 has already been tested and it will be tested again. It could even be breached to the upside.

USD/CHF: The USD/CHF pair is in a strong trend. Since January 29, 2016, it has come down by 550 pips. From the high reached on Monday, February 8, 2016, it has lost 260 pips. The perceived weakness in the USD coupled with the ongoing strength in the CHF (as evident on CHF pairs) is responsible for the strong bearish trend. The support level at 0.9700 has already been tested and it will be tested again. It could even be breached to the downside.

GBP/USD: The movement in the cable is currently erratic at best. The market is choppy; and though a directional movement is imminent, which would lead to a trend confirmation pattern. It is better to approach the market with some dexterity, because there are mixed signals in the market.

USD/JPY: The USD/JPY pair has exceeded our targets for this week. The price is currently going below the supply levels of 116.00 and 115.50 threatening to slash through the demand levels of 114.00 and 113.50. The price is under the EMA 56 and the RSI period 14 is below the level of 50. Therefore, it is logical to assume that the bearish trend would continue.

EUR/JPY: This cross came down on Monday, but it made effort to go upwards on Tuesday. A bearish bias is still valid, because the price has not gone above the EMA 56. Likewise, the RSI period 14 has not gone above the level of 50. Further bullish movement cannot be ruled out.