FX.co ★ Daily analysis of major pairs for May 12, 2016

EUR/USD: This market has consolidated so far this week. A breakout is expected 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. A further southward movement is a probability.

USD/CHF: This currency trading instrument is still experiencing a bearish correction. However, the bearish correction has not jeopardized the ongoing bullish bias, though the Williams' % Range period 20 is almost in the oversold territory. This could mean a good opportunity to seek potential long trades.

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 the accumulation territories at 1.4350 and 1.4300. This means that the breakout might favor bears.

USD/JPY: There is an unambiguous "buy" signal on the USD/JPY 4-hour chart, with a clean Bullish Confirmation Pattern in the market. Bulls have won so far this week, and they are likely to keep on pushing the price higher, targeting the supply levels at 110.00 and 110.50.

EUR/JPY: There is a clean "buy" signal on the EUR/JPY 4-hour chart, with a clean Bullish Confirmation Pattern in the market. The EMA 11 is above the EMA 56, and the RSI period 14 is above the level 50. Bulls have won so far this week, and it is expected that they would keep on pushing the price higher, targeting the supply levels at 125.00 and 125.50.