18.12.201502:30 Forex Analysis & Reviews: Daily analysis of major pairs for December 18, 2015

Long-term review

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EUR/USD: This pair has already generated a "sell" signal making long trades illogical. The price was unable to go above the resistance line at 1.1050, and since then the price has gone down by 220 pips. It is better to seek short trades here, for further southward movement is anticipated.

USD/CHF: The USD/CHF pair has been making some commendable bullish attempts. The price is now above the support level of 0.9950 in the context of a downtrend. However, it must be mentioned that any movement above the resistance level of 1.0050 will result in a Bullish Confirmation Pattern in the market. By then, the EMA 11 will go above the EMA 56, while the Williams' % Range period 20 is likely to remain in the overbought territory (which has already been attained).

GBP/USD: The bearish indication on the cable is now conspicuous. This week, the price has fallen by 300 pips, forming a clean Bearish Confirmation Pattern in the market. The price has moved below the distribution territory of 1.4900 going towards the accumulation territory of 1.4850. The market has become really weak and this is expected to continue for some time.

USD/JPY: Having gone upwards by 230 pips this week (from the demand level at 120.50), the USD/JPY pair has gone bullish. The price is now above the demand level of 122.50, going towards the supply level of 123.00. This has become an easy target for bulls.

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. It is possible for the price to journey further upwards from here, as bulls target the supply zones of 134.00 and 134.50.

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