FX.co ★ Daily analysis of major pairs for May 26, 2016

EUR/USD: The EUR/USD pair moved sideways on Wednesday, following the bearish run it performed on Tuesday, partly owing to the ongoing stamina in the USD. The price has gone below the resistance line at 1.1200, targeting the support line at 1.1150. Since there is a Bearish Confirmation Pattern in the market, it is rational to think that the price could even go below that support line. Some fundamental figures are expected today and they would have impact on the markets.

USD/CHF: The USD/CHF pair went flat on Wednesday, though the outlook is bullish. The EMA 11 is above the EMA 56; whereas the Williams' % Range period 20 is sloping towards the oversold area. This is a threat to the existing bullish bias, and bulls need to keep the price from falling below the support level at 0.9800; otherwise, things could turn vividly downwards.

GBP/USD: The Cable has moved upwards by 230 pips this week. The price is now above the accumulation territory at 1.4700. As a result of the Bullish Confirmation Pattern on the chart, the Cable is expected to keep on going upwards, reaching the distribution territories at 1.4750 and 1.4800.

USD/JPY: The USD/JPY pair has some near-term bullishness in it. There is still some degree of willingness in bulls, to push the price upwards, though there is some resistance from bears. Since the EMA 11 is above the EMA 56, and the RSI period 14 is also above the level 50, it is rational to expect an imminent breakout to favor bulls.

EUR/JPY: This cross has gone slightly downwards this week, but it has been unable to stay below the demand zone at 122.50. The price should go below the demand zone so as to support the current bearish signal in the market; otherwise, a possible rally would trump up the current bearish signal.