16.07.201511:31 Forex Analysis & Reviews: Daily analysis of major pairs for July 16, 2015

EUR/USD: The EUR/USD pair has continued to go south reluctantly. Since the beginning of the week, the market has gone down by up to 180 pips. The support line at 1.0950 has already been tested and it could be breached to the downside. The support line is stubborn: it was tested a few weeks ago, but the price could not stay below it. Therefore, a breach of the support line would mean a good accomplishment for the bears (unless the EUR gains enormous stamina). In addition, some fundamental figures are expected today and they could have impact on USD pairs.

USD/CHF: It is normal that this pair is going upwards as EUR/USD is going downwards. The duo must go opposite each other in most cases, and as a result, USD/CHF has succeeded in going above the support level at 0.9500. The major obstacle to overcome next is the resistance level at 0.9550.

GBP/USD: This is a bullish market, with a clean Bullish Confirmation Pattern on the chart. The 14-period RSI is above the level of 50. The EMA 11 is above the EMA 56, while the price is above them. This shows that the price could continue going upwards, though there is a form of opposition at the distribution territory at 1.5650. With more buying pressure, that distribution territory could be breached to the upside.

USD/JPY: The USD/JPY pair has gone up by at least 150 pips this week. Since the bullish signal was formed, the price has gone above the demand levels at 123.00 and 123.50. The next target is the supply levels at 124.00 and 124.50. These supply levels must be reached, otherwise the price could experience a bearish correction.

EUR/JPY: This cross continues to trend sideways, but a breakout is imminent. Will it go upward or downwards? In the meantime, it would be great to stay away from the cross until a clear directional bias is confirmed.