Daily analysis of major pairs for January 6, 2017

EUR/USD: This pair has generated a "buy" signal. Price went upwards significantly on Thursday, owing to the weakness of USD (which is visible on USD/CHF and USD/JPY). Bulls would now target the resistance lines at 1.0650, 1.0700, and 1.0750. As it was once mentioned, a movement above the price line at 1.0600 would result in a bullish signal; and that is what is currently happening.

USD/CHF: The USD/CHF pair has come down from the high of January 3 (by about 230 pips). There is now a clear Bearish Confirmation Pattern in the market, and the great psychological level at 1.0000 now stands the chance of being tested. In case it is breached to the downside, long trades would become completely illogical.

GBP/USD: The Cable has continued to go higher and higher, and that has resulted in a bullish signal in the market. The EMA 11 is above the EMA 56 and the RSI period 14 is below the level 50. A further bullish journey is possible, and the distribution territories at 1.2500 and 1.2550 might be reached. Price might even go above those distribution territories.

USD/JPY: This pair came down significantly yesterday. From the weekly top of 118.60, price has come down by 330 pips, forming a Bearish Confirmation Pattern on the 4-hour chart. Further downwards movement is expected, which would take price towards the demand levels at 115.00 and 114.50.

EUR/JPY: This cross pair has been consolidating for a few weeks. Nevertheless, a closer look at the market reveals that bears are still intent on driving price lower. There is a bearish signal in the market: The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. Since the movement in the market would be determined by whatever happens to EUR, the demand zones at 121.50 and 121.00 might be reached soon.