09.02.201601:39 Forex Analysis & Reviews: Daily analysis of major pairs for February 9, 2016

EUR/USD: This pair is making attempts to go above the resistance line of 1.1200, which was briefly overcome last week before the price went below it. The EMAs 11 and 56 (plus the Williams' % Range period 20) in the 4-hour chart show that a buy signal is a valid in the market. Therefore, the aforementioned resistance line would be breached as the market goes further upwards.

USD/CHF: Here, the price has moved far below the EMA 11, which in its turn is below the EMA 56. The Williams' % Range period 20 is perpetually in the oversold territory. The USD/CHF pair is now testing the support level of 0.9850, and it is likely to breach that support level to the downside today.

GBP/USD: The bearish movement started on the cable on Thursday, February 4, 2016, has become a threat to the recent bullish bias in the market. Should the price go further downward by 200 pips, that would signal an end to the bullish bias and the beginning of the bearish bias, which might enable the price to reach the accumulation territory around 1.4200 and 1.4150 (this week or next).

USD/JPY: The USD/JPY pair dropped by roughly 500 pips last week. It also dropped by over 200 pips on Monday from a high of the day. Bears are currently in control, and therefore long trades are not advisable until it is clear that the bearish movement is over. Right now, there is a possibility that the demand level of 115.00 would be easily breached to the downside.

EUR/JPY: This cross has also yielded to gravity, just like other JPY pairs, which are bearish in outlook now. The ongoing strength in EUR is unable to help this cross because the JPY has lots of stamina in it. Since there is a Bearish Confirmation Pattern in the market, it is logical to assume that the southwards movement started this week would continue.