FX.co ★ Daily analysis of major pairs for May 23, 2017

EUR/USD: The EUR/USD pair went upwards yesterday, testing the resistance line at 1.1250. There could be some temporary pullback after this, but price is expected to continue heading upwards, going above the resistance line at 1.1250 and going towards another resistance line at 1.3000. The resistance line at 1.3000 is the ultimate target for this week.

USD/CHF: The USD/CHF pair trended lower on Monday in continuation of the bearish trend that is in place. There is a Bearish Confirmation Pattern in the market, and a further decline in price is anticipated as price goes towards the support levels at 0.9700, 0.9650, and 0.9600.

GBP/USD: The Cable remains in a bullish market in spite of the recent consolidation on it. Price is now around the accumulation territory at 1.3000, and it may go towards the distribution territory at 1.3050 (after the distribution territory at 1.3000 is breached to the upside). More and more northward movement is anticipated this week.

USD/JPY: The USD/JPY pair experienced a major pullback last week, and did nothing significant on May 22, 2017. There is a bearish outlook in the market, and it would continue to be logical as long as price does not go above the supply level at 114.00 (which would, however, require extraordinary buying pressure).

EUR/JPY: This cross pair went upwards on Monday in the context of an uptrend. Price is currently in the demand zone of 125.00, and it may rise further, especially given the bullish expectation on JPY pairs. One factor helping the situation is a measure of strength in the EUR itself. Price could gain additional 200 pips this week, especially when the Yen becomes weak.