17.02.201610:34 Forex Analysis & Reviews: Daily analysis of major pairs for February 17, 2016

EUR/USD: This pair moved sideways yesterday, consolidating to the downside. The price is now below the resistance line at 1.1200, threatening to go further south. Another movement of 150 pips to the downside would mean the end of the recent bullish outlook.

USD/CHF: the USD/CHF pair moved upwards on Monday, and it moved sideways yesterday, consolidating to the upside. The price is now above the support line of 0.9850, threatening to go further north. Another movement of 150 pips to the upside would mean the end of the recent bearish outlook.

GBP/USD: The GBP/USD pair has already dropped by 200 pips this week, testing the accumulation territory of 1.4300. Since there is a Bearish Confirmation Pattern in the 4-hour chart, it is safe to assume that the bearish trend would continue, reaching the accumulation territories at 1.4250 and 1.4200 today or tomorrow.

USD/JPY: What this currency trading instrument is doing right now is best called an upward bounce and consolidation in the context of a downtrend. The price is below the EMA 11, which is below the EMA 56. The RSI period 14 is below the level of 50. When there is a breakout in the market, it would most probably be to the downside.

EUR/JPY: by all indication, the bias is still bearish on the cross. Unless the price goes upwards by 300 pips, long trades would not be rational in this market. The demand zones of 126.50 and 126.00 stand to be tested; whereas the supply zones at 129.00 and 129.50 should do a good job to prevent bullish machination.