FX.co ★ Daily analysis of major pairs for August 15, 2016

EUR/USD: This pair went upwards 130 pips last week, testing the resistance line at 1.1200, and closing below it. Price should continue going upwards: The only impediment along the way is that EUR is expected to become weak this week, causing the EUR/USD to plunge. This expectation may also happen on other EUR pairs. Once price goes below the support line at 1.1050, the outlook on the market would turn bearish.

USD/CHF: This market has gone bearish in the short-term, closing at 0.9743 on August 12, 2016. While price could continue going downwards, there is also a possibility of a rally before the end of the week, particularly when the EUR/USD trends downwards. This means that the USD/CHF would continue going south only as long as the EUR/USD is strong.

GBP/USD: As it was forecasted last week, the GBP/USD went south by 170 pips, to close below the distribution territory at 1.2950. The outlook on the market, as well as other GBP pairs, is bearish this week, and price could test the accumulation territories at 1.2900, 1.2850 and 1.2800.

USD/JPY: As it was expected, bears came out as winners last week, on this pair. Efforts by bulls to effect rallies were scuttled by bears, as they pushed price further south, thus preserving the existing bearish outlook in the market. This week, bears should continue their dominance, as rallies proffer short-selling opportunities.

EUR/JPY: This currency trading instrument consolidated throughout last week – in the context of a downtrend. The Bearish Confirmation Pattern in the market is still a valid thing, and price is expected to move further downwards this week, reaching the demand zones at 112.50 and 112.00; especially as EUR is expected to be weakened further this week.