FX.co ★ Daily analysis of major pairs for May 11, 2016

EUR/USD: This market has consolidated so far this week. There is going to be a breakout soon, most probably to the downside. The Williams' % Range period 20 is around the oversold area while the EMA 11 is below the EMA 56.

USD/CHF: This pair briefly went above the resistance level at 0.9750 and later dipped a little. However, the bullish bias is still valid owing to the bullish confirmation pattern on the 4-hour chart. The price might trend higher from here.

GBP/USD: This currency trading instrument has consolidated so far this week in the context of a downtrend. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. When a breakout does occur in the market, it would probably take the price below accumulation territories at 1.4350 and 1.4300. This means that the breakout might favor the bears.

USD/JPY: There is a bullish signal on USD/JPY since the price has gone upwards by 240 pips this week. There is also an interesting bearish correction right now, which might proffer opportunities for long trades alongside the existing bullish bias in the market. As long as the price does not go below the demand levels at 107.00 and 106.50, the bullish signal would be rational.

EUR/JPY: There is a bullish signal on EUR/JPY, since the price has gone upwards by 240 pips this week. There is also an interesting bearish correction right now, which might provide opportunities for long trades alongside the existing bullish bias in the market. As long as the price does not go below the demand zones at 122.00 and 121.50, the bullish signal would be rational.