Daily analysis of major pairs for December 27, 2013

The JPY pairs experienced upward gaps yesterday and have been trending upwards in most cases. This is in agreement with the extant bullish bias.

EUR/USD: This pair has rejected the recent bearish pull on it. The price broke upwards, cutting through the market line of 1.3750, while going further upwards. Clearly, the bias has turned bullish and short trades no longer make much sense now. The EMA 11 has crossed the EMA 56 to the upside, while the Williams’ % Range has followed suit. The new bullish bias is early enough to be capitalized upon. The price may reach the next target at the resistance line of 1.3800.

USD/CHF: It is now obvious that the USD is weak, for this pair has started going down (This is evident on the USD/JPY which has failed to go significantly upwards in spite of the fact that other JPY pairs are trending upwards). Now, the USD/CHF is weak, but no bearish signal has been generated in the 4-hour chart. The Williams’ % Range is already in the oversold area; thus one would need to wait for the EMAs to confirm it before taking a position.

GBP/USD: The Cable is already journeying upwards, as it was forecasted on Wednesday. The EUR/USD also has finally complied with the positive correlation phenomenon with the Cable. The Cable would now go towards the distribution territory of 1.6500.

USD/JPY: The JPY pairs experienced upwards gaps yesterday and have been trending upwards in most cases. This is in agreement with the extant bullish bias. Nevertheless, the USD is weak: this is evident on the USD/JPY which has failed to go significantly upwards in spite of the fact that other JPY pairs are trending upwards. The bullish bias is still valid and the market could eventually go upwards.

EUR/JPY: After the gap-up that occurred yesterday, this pair has moved upwards by close to 100 pips. The next target would be at the supply zone of 144.50.

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