FX.co ★ Daily analysis of major pairs for July 28, 2016

EUR/USD: The EUR/USD pair has assumed a bullish movement, which started yesterday. There is now a bullish bias in the market, and price could go further upwards, reaching the resistance lines at 1.1100, 1.1150. The bullish movement would continue as long as USD shows short-term weakness.

USD/CHF: This pair tumbled yesterday, owing to the short-term weakness in USD. Price is expected to continue trending further and further downwards, reaching the support levels at 0.9750 and 0.9700. This would be achieved this week or next week unless the situation changes.

GBP/USD: The GBP/USD pair has generated a bullish signal in the short term. Price is above the EMA 56, and the RSI period 14 is above the level 50, but there would not be a Bullish Confirmation Pattern in the market until the EMA 11 itself is above the level 50. Unless this happens, there would be a risk of a bearish movement.

USD/JPY: Although in a precarious situation, the bearish signal in this market is a valid thing. The downward movement has resulted in a bearish signal, and a further downwards trend is expected, which would enable price to reach the demand levels at 104.00 and 103.50. The demand level at 104.00 was previously tested and it would be tested again.

EUR/JPY: The outlook on this cross is similar to that of the USD/JPY pair. Although in a precarious situation, the bearish signal in this market is a valid thing. The downward movement has resulted in a bearish signal, and further downwards trend is expected, which would enable price to reach the demand zones at 115.50 and 115.00. The demand level at 115.00 was previously tested and it would be tested again.