Daily analysis of major pairs for August 17, 2015

The bullish effort on the Cable has led to a bullish signal on it. However, there is one obstacle to be surmounted – the distribution territory at 1.5650. This distribution territory has adamantly rejected sincere bullish efforts for the past several weeks, and the price needs to close above it if the current bullish signal would continue to make sense. Otherwise, there could be a bearish correction this week.

EUR/USD: The EUR/USD has now become a bull market in the near-term. The price went upwards last week, testing the resistance line at 1.1200. The price could go above the resistance line this week; as it goes towards another resistance lines at 1.1250 and 1.1300. These are the targets for the week, for the Bullish Confirmation Pattern in the market is clear.

USD/CHF: Although this pair went down last week, closing at 0.9758, the recent bullish outlook has not been invalidated. What can invalidate the bullish outlook is an event in which the price closes below the support level at 0.9650. But in case that does not happen, this week can see some commendable bullish attempts, especially if the USD tries to amass lots of stamina.

GBP/USD: The bullish effort on the Cable has led to a bullish signal on it. However, there is one obstacle to be surmounted – the distribution territory at 1.5650. This distribution territory has adamantly rejected sincere bullish efforts for the past several weeks, and the price needs to close above it if the current bullish signal would continue to make sense. Otherwise, there could be a bearish correction this week.

USD/JPY: The Big Picture on this currency trading instrument shows that there is a no dominant trend in the market. Upswings and downswings are often short-lived and sustained trending moves are rather rare. This market is, nevertheless, great for scalpers and intraday speculators. This week, it is expected that the price would either go above the supply level at 125.50 or below the demand level at 123.50. Should this happen, that would mean a strong bullish or bearish outlook.

EUR/JPY: The EUR/JPY cross experienced a significant rally last week, rising from the demand zone at 136.00 and moving somewhat above the supply zone at 138.50. A further rally may be witnessed this week unless the Yen gains too much strength for the Euro, which is a possibility.

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