FX.co ★ Daily analysis of major pairs for February 12, 2016

EUR/USD: As is was mentioned in our last forecast, the EUR/USD pair is above the support line at 1.1300 now going further upwards in a slow and steady manner. While the USD remains weak, the EUR has been making some commendable bullish effort, which might enable the price to reach the resistance lines at 1.1350 and 1.1400.

USD/CHF: This pair is currently weak, and therefore, long trade would not be rational on it. Any rallies perceived here could be taken as an opportunity to go short at better prices for there is a tendency that the market would go on being weak, testing the support level at 0.9700, which has already been violently tested. The market would go below that support level enabling another support line at 0.9650 to be tried.

GBP/USD: This pair has become highly choppy now as there are mixed signals in the market. The EMA 11 is above the EMA 56 (buy indication) as the RSI period 14 is below the level of 50 (sell indication). Thus, it is better to stay away from the market until there is a clear directional signal.

USD/JPY: The USD/JPY pair (and other JPY pairs), has gone further downwards, while the bias is strongly bearish. The price has gone down by 600 pips this week, and it managed to decline by 1000 pips since January 29, 2016. The USD is weak and the JPY is strong – a situation that is perfect for a continuous bearish journey. The demand levels at 110.50 and 110.00 could still be tested this week.

EUR/JPY: There is a clear Bearish Confirmation Pattern on the EUR/JPY chart. The EMA 11 is below the EMA 56, while the RSI period 14 is below the level of 50. This means the outlook is bearish and though the price has exceeded our targets for the week, further southward movement is possible.