Daily analysis of major pairs for June 6, 2016

The USD/JPY dropped 450 pips last week, testing the demand level at 106.50. The next target to be reached is the demand level at 105.50, since there is a Bearish Confirmation Pattern in the market. There is also a possibility of bullish reversal this week.

EUR/USD: This pair shot upwards on Friday, overturning the bearish outlook on the market. Since price has moved upwards by 220 pips, a bullish signal has been formed. However, EUR needs to continue to be stronger than USD for this pair to continue moving upwards; otherwise things could reverse on favor of bears. After all, the outlook on EUR is bearish for the month of June.

USD/CHF: The USD/CHF consolidated from Monday to Friday and then plummeted on Friday. The bearish movement was very serious – occurring opposite to the direction of the EUR/USD. Further bearish movement could cause price to reach the support levels at 0.9700 and 0.9650 this week.

GBP/USD: Cable went up towards the distribution territory at 1.4700, where further rally was halted as price declined towards the accumulation territory at 1.4400. That was a 300-pip movement. Despite determined efforts from bears, price was unable to go below the accumulation territory at 1.4400, and as such, there is a rally expectation on the GBP/USD. GBP pairs would move seriously this month – in bearish and bullish modes.

USD/JPY: The USD/JPY dropped 450 pips last week, testing the demand level at 106.50. The next target to be reached is the demand level at 105.50, since there is a Bearish Confirmation Pattern in the market. There is also a possibility of bullish reversal this week.

EUR/JPY: This cross tested the supply zone at 124.00, and then dropped by 300 pips last week. Price closed at 121.07 on Friday, just below the supply zone at 121.50. Further decline is possible, which might take price towards demand zones at 120.50 and 120.00. There is also a possibility of reversal this week.

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