FX.co ★ Daily analysis of major pairs for January 7, 2016

EUR/USD: There is a vivid bearish signal for this trading instrument as bears push the price lower and lower. The EMA 11 is below the EMA 56 and the Williams' % Range period 20 is not far from the oversold region. Potential targets for this week remain at 1.0700 and 1.0650.

USD/CHF: The USD/CHF pair is in an uptrend, and given the current price action, it would be nice to buy pullbacks in the market. This is because the upward journey would continue, but there would be occasional muscles flexing the bears leading to occasional bearish corrections. The time during these corrections would be ideal for long trades in case a bullish candle forms next. Right now, there is a correction, following desperate attempts to breach the resistance level at 1.0100. Bulls might succeed in breaking that resistance level to the upside.

GBP/USD: Since mid-December, the Cable has gone down by 600 pips. There is a clear bearish confirmation pattern on the chart, which means the price could continue with its downward journey. The accumulation territory at 1.4600 stands a great chance of being tested. It also stands a great chance of being broken to the downside as the price goes further down.

USD/JPY: The USD/JPY pair has gone down by almost 145 pips this week, and right now, the price threatens to break down further. There is a lot of trading activity around the accumulation territory of 118.50, which might be easily broken to the downside. Further downward movement is possible in the market, and therefore, short trade should be sought.

EUR/JPY: This cross has almost tested the demand zone at 127.00. The bearish bias is now very strong, and any rallies should be taken as short-selling opportunities in this kind of market. In spite of bullish attempts – like the one being seen right now – the demand zone at 127.00 could still be breached to the downside.