17.12.201508:01 Forex Analysis & Reviews: Daily analysis of major pairs for December 17, 2015

Long-term review

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EUR/USD: After testing the resistance line at 1.1050, this currency trading instrument got corrected to the downside. Nevertheless, this could be seen as a mere correction in the context of an uptrend, because the price should go below the support line of 1.0800 before it could be assumed that the bullish bias is over.

USD/CHF: The USD/CHF pair faces two challenges: the euro is strong and the Swiss franc could potentially rally before the Christmas Eve. Nonetheless, the USD might rally against other major currencies. Any rallies that are seen in this market should be taken as short-selling signals, because the bearish outlook would be in place until the great resistance level of 1.0000 is overcome.

GBP/USD: This week, the cable fell by 200 pips, leading to a clear Bearish Confirmation Pattern in the market. The price has moved below the distribution territory of 1.5000, going towards the accumulation territory of 1.4950.

USD/JPY: After testing the demand level of 120.50, the USD/JPY pair moved upwards by 170 pips this week. This is happening in the context of a downtrend, though the bias would turn bullish once the price goes above the supply level of 122.50 (for the bearish trend is now threatened). Since the outlook on JPY pairs is bullish for the month of December, this is very likely to occur.

EUR/JPY: A closer look at the 4-hour chart reveals that this cross is in a bullish mode, though the price has moved sideways so far the week. The sideways movement cannot last forever. The price is likely to journey further upwards from here, as bulls target the supply zones of 134.00 and 134.50.

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