FX.co ★ Daily analysis of major pairs for July 6, 2016

EUR/USD: Price went downwards a little on June 5, 2016, but it was nothing significant to put bulls in jeopardy. The Bearish Confirmation Pattern in the market could be rendered useless price goes above the resistance line at 1.1300. Otherwise, the extant bearish outlook would be underlined again.

USD/CHF: This currency trading instrument is making commendable effort to go upwards, though the odds are against it. The price action that happened yesterday has returned a pristine bullish signal to the market. Bulls might thus test the resistance levels at 0.9800 and 0.9850. Testing of the resistance level at 0.9850 would make the bullish signal particularly stronger.

GBP/USD: Cable dropped 230 pips this week, making it a decrease of about 1,960 pips since June 24, 2016. There are strong Bearish Confirmation Patterns on the 4-hour, daily and weekly charts, which warn against long trades in the market. There are accumulation territories at 1.3000, 1.2950, and 1.2900, which could be reached this week or next.

USD/JPY: Price dropped below our targets, which are now supply levels (102.50 and 102.00). Further bearish movement is anticipated, since the outlook on the JPY pairs is bearish for this week and for this month. The EMA 11 remains below the EMA 56, and the RSI period 14 remains below the level 50. Further southwards drop is possible.

EUR/JPY: This cross continued its bearish journey, which was made prominent on Tuesday. There is no logical reason to seek long trades in this market: The EMA 11 is far below the EMA 56, while the RSI period 14 is vividly below the level 50. This is a kind of market that shows rallies that turn out to be "sell" signals.