Daily analysis of major pairs for January 18, 2016

The GBP/USD is one of the strongest trending currency trading instruments among the majors. The bias on the instrument is bearish and it is possible that the price would continue going downwards, reaching the accumulation territories at 1.4200 and 1.4150 this week. This bias would be valid until there is a bullish reversal of at least, 300 pips.

EUR/USD: The condition affecting the EUR/USD is quite similar to the condition affecting the USD/CHF. So the two pairs must be watched closely. Just like the latter, the bias on the former is also neutral in the near term.

USD/CHF: The bias on this pair is neutral in the near-term because the pair has not made any strong directional movement in recent times. There are short-term upswings and downswings in the market, but a predictable directional movement is anticipated this week or next week, which would most probably favor the bears.

GBP/USD: The GBP/USD is one of the strongest trending currency trading instruments among the majors. The bias on the instrument is bearish and it is possible that the price would continue going downwards, reaching the accumulation territories at 1.4200 and 1.4150 this week. This bias would be valid until there is a bullish reversal of at least, 300 pips.

USD/JPY: USD/JPY moved sideways in the most part of last week, though the price went further downwards on Friday, emphasizing the extant bearish outlook on the market (just as the case is on most other JPY pairs). It is likely that the price would continue trending further downwards this week, reaching the demand levels at 116.00 and 115.50.

EUR/JPY: In contrast to what happened two weeks ago, this cross simply moved sideways last week. There would soon be a breakout this week or next week, which would be determined by the conditions affecting the EUR. So it is rational to say that movement on the EUR/JPY cross would be determined by whatever happens to the EUR, and as a result, we may see a movement which is contrary to what other JPY pairs are doing.

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