FX.co ★ Daily analysis of major pairs for July 22, 2016

EUR/USD: There is a bearish signal on the EUR/USD, for the price has gone downwards a bit this week. The EMA 11 is below the EMA 56, and the Williams' % Range period 20 is not far from the oversold territory. Should the price fail to trend strongly today or next Monday, the price would enter another tight equilibrium phase.

USD/CHF: This pair tested the resistance level at 0.9900 and got corrected lower. The indicators on the 4-hour chart point to a possibility of further northward journey. But the resistance level at 0.9900 would pose a formidable challenge to bears. The risk of a bearish movement is present.

GBP/USD: The Cable has become a flat market, and the bias on it has turned neutral. It is possible that this equilibrium phase would continue to hold. Nonetheless, a breakout is imminent, which would push the price upwards or downwards significantly. Until that happens, this market should be avoided.

USD/JPY: The USD/JPY experienced a bearish correction yesterday. However, the bias is still bullish, and unless the price goes below the support level at 103.00, the bullish bias would hold. It is possible that bulls would push the price upwards from here, testing the supply levels at 106.50 and 107.00 again. There is a Bullish Confirmation Pattern on the chart.

EUR/JPY: There are mixed signals on this cross right now. The RSI period 14 has gone below the level 50, showing some weakness in the market. On the other hand, the EMA 11 is still above the EMA 56, showing that the situation is not totally helpless for bulls. One would need to wait until there is a clearer signal: either the RSI would cross the level 50 to the upside to conform to the EMAs, or the EMA 11 would cross the EMA 56 to the downside to conform to the RSI.