22.01.201501:12 Forex Analysis & Reviews: Daily analysis of major pairs for January 22, 2015

Long-term review

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EUR/USD: The EUR/USD pair is largely consolidating while the overall outlook remains bearish. There are support lines at 1.1600 and 1.1550 which might challenge further southerly movements. There are also resistance lines at 1.1750 and 1.1800, which may defend the existing bearish outlook.

USD/CHF: The outlook on this special market remains unchanged. The forecast on this currently abnormal market is bearish but bullish correction is expected to continue gradually in spite of occasional large bearish corrections. Therefore, the USD/CHF pair would move upwards by at least 500 pips this week. Some fundamental figures are expected today and they would have some impact on the markets.

GBP/USD: In spite of some obvious effort by bulls to push the price upwards, the USD is still able to prove it is stronger than the GBP. As the GBP is falling somewhere else, it is falling against the USD and it may reach the accumulation territory at 1.5050. There is a Bearish Confirmation Pattern in the chart.

USD/JPY: This market is now dicey – it is not uncommon for the price to trend downwards and then experience bullish correction in the short-term. I would suggest staying away from this market until there is a predictable directional bias.

EUR/JPY: The long-term outlook on this cross is bearish. While the price is above the EMA 11, it is still below the EMA 56. Although the RSI period 14 is above the level 50, things will not really turn bullish until the price crosses the supply zone at 138.50 to the upside.

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