Daily analysis of major pairs for July 27, 2015

What is happening on the USD/JPY signifies a serious battle between bulls and bears. Although the recent bullish bias in the market remains intact, it is wise to stay away from this pair until there is a clean directional bias in the market. This clean directional bias should be seen this week.

EUR/USD: EUR/USD rose upwards last week and then consolidated till the end of the week. A movement above the resistance lines at 1.1050 and 1.1100 would result in a Bullish Confirmation Pattern in the market. Whereas a movement below the support lines at 1.0900 and 1.0850 would simply reinforce the recent bearish bias in the market. Right now, long trades are not recommended here until there is a clean indication that the bears are leading.

USD/CHF: Surprisingly, the USD/CHF did not come down as seriously as the EUR/USD has gone upwards. Nevertheless, the inability of the USD/CHF to go above the resistance level at 0.9650 means that bulls should approach this market with caution. In case the price fails to rally meaningfully this week, there might be a further bearish correction.

GBP/USD: The Cable closed below the distribution territory at 1.5550 last week, generating a clean “sell” signal. With further bears’ power, the accumulation territories at 1.5450 and 1.5400 would be tested. In case the price moves above the distribution territories at 1.5550 and 1.5600, the current “sell” signal would be invalidated.

USD/JPY: What is happening on this currency trading instrument signifies a serious battle between buyers and sellers. Although the recent bullish bias in the market remains intact, it is wise to stay away from this instrument until there is a clean directional bias in the market. This clean directional bias should be seen this week.

EUR/JPY: This crossed closed on a bullish note last week, moving towards the supply zone at 136.00. This has resulted in a clean bullish outlook, which should continue to hold out unless the Yen gains a considerable amount of stamina. This is a situation that can halt further bullish movement in this market.

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