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Daily analysis of major pairs for December 19, 2014

EUR/USD: This pair has continued to trend downwards – just in the opposite bias of the USD/CHF movement. From the resistance line at 1.2550, the price dropped sharply and closed below the resistance level at 1.2300. The price still has a lot of room to go further south and eventually, the support line at 1.2250 could be tested.


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USD/CHF: The USD/CHF price rose from around the support level at 0.9550, and is trended upwards significantly. The price nearly touched the resistance level at 0.9850. This is a move of close to 300 pips, and it has led to a strong Bullish Confirmation Pattern. With further strength in the Greenback, the price may go above the resistance level at 0.9850.


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GBP/USD: It is not yet logical to seek long trades on the Cable, since the current rally may be seen as another opportunity to open short trades. The outlook on the market is bearish: the price may challenge the accumulation territory at 1.5550 (which has been tested already). While one may target that accumulation territory in the near-term, it would require extraordinary weakness in the market for the accumulation territory to be breached to the downside.


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USD/JPY: This market has the potential to go further upwards. The price may go above the supply level at 119.50 and may target another supply level at 120.00 after that.


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EUR/JPY: As a result of the weakness in the EUR, this currency trading instrument may still go downwards. The bias is bearish: the EMA 11 is below the EMA 56 and the RSI period 14 has gone below the level 50. In the face of the extant Bearish Confirmation Pattern in the chart, the price may go further downwards.


1418944483_5.pngThe material has been provided by InstaForex Company - www.instaforex.com