FX.co ★ Daily analysis of major pairs for July 26, 2016

EUR/USD: This pair made a faint effort to go upwards yesterday, but nothing has really changed. There is a "sell" signal on the 4-hour chart, and there is a high probability that the price would go further downwards this week, especially in the face of expected stamina in USD, which would aid bears.

USD/CHF: The USD/CHF has been able to maintain its bullishness. There is a Bullish Confirmation Pattern on the chart, and further upwards movement is possible. The price has gone above the support level at 0.9850, testing the resistance level at 0.9900. Despite several bullish attacks, the resistance level is yet to be broken to the upside. However, that objective could be realized this week.

GBP/USD: The Cable traded sideways last week, not going above the distribution territory at 1.3400, nor going below the accumulation territory at 1.2950. This stance has not changed this week. This has caused the bias to become neutral in the near term. But there could be a breakout this week or next, which would push the price above or below the aforementioned accumulation and distribution territories.

USD/JPY: This currency trading instrument is showing a sign of weakness – something that could jeopardize the existing bullish bias – especially in the face of the expected weakness in JPY pairs this week. Further downwards movement is a possibility, and this can eventually lead to a Bearish Confirmation Pattern on the chart.

EUR/JPY: There are mixed signal on this cross. It consolidated to the downside yesterday, but things have not gone completely bearish. That expectation could come to fruition this week; owing to a possible weakness in JPY pairs. Thus, bears might be able to target the demand zones at 116.00, 115.50, and 115.00 this week.