FX.co ★ Daily analysis of major pairs for January 27, 2015

EUR/USD: After testing the support line at 1.1100, the EUR/USD pair bounced upwards by over 190 pips. The upward bounce pales into insignificance when compared to the overall bearish bias, which is now very strong. In other words, the current upward bounce is better seen as a clean opportunity to sell short as the price rallies in the context of a downtrend.

USD/CHF: The outlook for the USD/CHF pair remains unchanged. The bias on this currently abnormal market is bearish but it is expected that the bullish correction would continue gradually in spite of occasional large bearish corrections. However, the upwards movement would be slow and gradual.

GBP/USD: This currency trading instrument challenged the accumulation territory at 1.5000, but the territory was successfully defended. The price bounced upwards after this, closing above the accumulation territory at 1.5050. However, the general outlook for the market is bearish, and it is expected that the price would come down very soon. The accumulation territory at 1.5000 would be challenged again.

USD/JPY: The movement on this pair is not as strong as the movement on the EUR/JPY pair. However, the indication currently shows that short trades are not advisable right now, for further weakness in the Yen could cause the price to reach the supply level at 119.00.

EUR/JPY: Just like the EUR/USD pair, this cross is also trying to rally in the context of the downtrend. The bearish outlook may be aided by continuous weakness in the Euro, but there is a possibility of the Yen becoming very weak; thus enabling a serious rally in the market.