18.02.201609:48 Forex Analysis & Reviews: Daily analysis of major pairs for February 18, 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. There is a sell signal in the market for the price might go downward by another 150 pips today or tomorrow. Moreover, some fundamental figures are expected today and they can have a huge impact on the EUR/USD pair.

USD/CHF: There is a bullish signal in this market, because the price has moved upwards by 150 pips this week. The EMA 11 has crossed the EMA 56 to the upside and the Williams' % Range period 20 is in an overbought region. There is a new Bullish Confirmation Pattern in the market, which would become more conspicuous as the price goes further north.

GBP/USD: The cable has already dropped by 280 pips compared to a high reached on February 15, 2016. This market is volatile and the price has tested the accumulation territory of 1.4250, which is our initial target for the week. The target would be moved up soon as the price goes to other accumulation territories of 1.4200 and 1.4150. The outlook is bearish now.

USD/JPY: This currency trading instrument has been moving sideways from Tuesday till now. It is better to stay out of the market until there is a clear directional signal. Right now the signals are mixed . The RSI period 14 is showing a buy signal, while the EMAs 11 and 12 increase the possibility of further bearish movement. Today or tomorrow would determine a direction the market would take.

EUR/JPY: by all indication, the bias on the cross is still bearish. Unless the price goes 300 pips upwards, long trades would not be rational in the market. The demand zones at 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 bulls' machination.