Daily analysis of major pairs for December 26, 2013

EUR/USD: There is
a Bearish Confirmation Pattern in the EUR/USD chart – the EMA 11 is below the
EMA 56. Meanwhile, the position of the Williams’ % Range shows that while there
may be a rally when momentum returns into the market, it would be transitory,
for the trend is weak. The support line of 1.3650 of remains an immediate
target, though the price could go lower than that.

USD/CHF:  There is a Bullish Confirmation Pattern in the
USD/CHF chart – the EMA 11 is above the EMA 56. Meanwhile, the position of the
Williams’ % Range shows that while there may be a southward shot when momentum
returns into the market, it would be transitory, for the trend is strong. The
resistance level of 0.9000 remains an immediate target, though the price could
go further than that.

GBP/USD:  This pair is, surprisingly, a bull market.
This is a sharp contrast to its EUR/USD counterpart, which ought to be moving
in a positive correlation with it (Nevertheless, one would eventually respect
and comply with the other’s direction). The accumulation territories at 1.6350
and 1.6300 could act as hurdles to bears’ attempts.

USD/JPY: The immediate
target here remains the supply level of 104.50, which was tested a few times
last week, and stands another chance of being tested again. With the increase
in the buying pressure, the currency instrument may even overcome this supply
level.

EUR/JPY: There
has not been much change on the EUR/JPY, but there is still a Bullish
Confirmation Pattern in the chart. The supply zone at 104.50 remains the first
target as soon as the market becomes lively.   

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