FX.co ★ Daily analysis of major pairs for January 2, 2015

EUR/USD: The EUR/USD has been able to trade downwards this week, closing below the resistance line at 1.2150. The price is now challenging the support line at 1.2100, which would be easily breached to the downside, especially in the face of the current weakness in the EUR.

USD/CHF: The USD/CHF has been able to trade upwards this week, closing above the support level at 0.9900. The price is now going towards the supply level at 0.9950, which would be easily breached to the upside, especially in the face of the current strength in the USD. It is now very much likely that the USD would reach parity with the CHF.

GBP/USD: This is a weak market – irrespective of what the bulls are doing. Rallies have invariably offered short-selling opportunities. There is no going to be a threat to the bullish outlook unless the price closes above the distribution territory at 1.5700. Meanwhile, the recalcitrant accumulation territory at 1.5500 could be tested again. That is our target for next week.

USD/JPY: This currency trading instrument is in an unstable condition, and it is better to stay away from the market right now. A break above the supply level at 120.50 would strengthen a bullish outlook; whereas a break below the demand level at 118.50 would result in a Bearish Confirmation Pattern in the chart.

EUR/JPY: This is a bear market. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. The price can test the demand zone at 144.50.