FX.co ★ Daily analysis of major pairs for January 17, 2017

EUR/USD: This pair is in a bullish mode, and because of the current Bullish Confirmation Pattern on the 4-hour chart, it is possible that price would continue going upwards this week, reaching the resistance lines at 1.0650 and 1.0700 soon. The resistance line at 1.0650 was tested last week, and it may be tested again this week.

USD/CHF: The USD/CHF pair went downwards seriously last week, resulting in a Bearish Confirmation Pattern in the market. Price hit the low of 1.0042, and it could still go further than that. Although the market is quite choppy, a further downwards movement is anticipated and the support level 1.0000 could tested this week.

GBP/USD: This GBP/USD pair opened with a gap-down this week and later moved sideways on Monday. The bias remains bearish and a further downward movement is anticipated this week, for price may reach the accumulation territories at 1.1950 and 1.1900 this week, but that would require a strong selling pressure.

USD/JPY: This currency trading instrument did not move significantly yesterday – though a bearish signal has already formed on it. The current sideways movement may continue for some time (or days) but a breakout would happen soon, which would most probably be in favor of the bears.

EUR/JPY: The EUR/JPY pair also gapped down at the beginning of this trading week. The outlook on the market has turned bearish since last week, and as price trended further downwards on Monday, the bearish outlook has been strengthened further. The next targets are the demand zones at 120.50 and 120.00; to be attained soon.