Daily analysis of major pairs for July 7, 2015

EUR/USD: The EUR/USD pair and most other EUR pairs opened with downward gaps this week. Gaps have been filled in most cases, but the EUR/USD pair remains in a bearish trend. The price needs to break the support line at 1.0950 to the downside. As long as the price is not able to breach the resistance line at 1.1250 to the upside, the bearish outlook would be rational.

USD/CHF: This is a bullish market and the price would continue going further north; especially in the face of continued weakness in the EUR/USD pair. The recalcitrant resistance level at 0.9500 is a major obstacle to bulls: only stronger buying pressure would cause a breakout.

GBP/USD: There is a 'sell' signal on this pair, but it needs to break the accumulation territory around 1.5550 to the downside. Unless the distribution territory at 1.5800 is overcome, the 'sell' signal would be in place.

USD/JPY: The USD/JPY pair is currently a market in which short-term traders and scalpers thrive. There have been short-term swings in the market as the price oscillates between the supply level at 124.00 and the demand level at 122.00. There is a need for a break above the aforementioned supply level or demand level before there could be a strong directional movement.

EUR/JPY: This cross opened with a gap down, but quickly recovered afterwards. This is exactly what happened last week (only that the last week movement was stronger). There is a Bearish Confirmation Pattern in the market and movement to the south is the most probable.