FX.co ★ Daily analysis of major pairs for May 31, 2016

EUR/USD: There is still a Bearish Confirmation Pattern on the 4-hour chart, in spite of the shallow bullish attempt that occurred yesterday in the context of a downtrend. The price might test the support lines at 1.1100 or even go below that. This expectation is logical, unless the USD shows any signs of vulnerability.

USD/CHF: The USD/CHF consolidated on May 30, 2016. The bulls are still willing to push the price northward, and there is a possibility that the resistance levels at 0.9950 and 1.0000 (a parity zone) would be tested. However, it is unlikely that the resistance level at 1.0000 would be broken to the upside, since there is also a threat from CHF, which might gain some stamina before the end of the week.

GBP/USD: This currency trading instrument went upwards last week and later got corrected. That correction has not put the bullish bias on the market in a precarious position, unless the price goes below the accumulation territory at 1.4450 (which requires a great deal of selling pressure). The most likely direction this week is northward.

USD/JPY: As it was said earlier, the bulls were willing to push USD/JPY further upwards, and that was what they did on Monday. The price moved upwards by 120 pips, now above the demand level at 111.00. The next targets are the supply levels at 111.50 and 112.00. Since there is a bullish signal in the market, those supply levels would be tested today or tomorrow.

EUR/JPY: There is a Bullish Confirmation Pattern on the EUR/JPY 4-hour chart. The EMA 11 has crossed the EMA 56 to the upside, while the RSI period 14 is above the level 50. The current bullish breakout is yet nothing significant. It would be significant only after the price goes above the supply level at 124.50.