Daily analysis of major pairs for December 23, 2016

EUR/USD went down on Monday and Tuesday, and then began to move upwards slowly
from Wednesday. All these happened in the context of a downtrend. The major
bias remains bearish, and so the current shallow bullish movement would turn
out to be opportunities to go short.


USD/CHF: The USD/CHF pair is still in
a bullish mode, despite the current consolidation to the downside. The price is
supposed to continue going upwards this week, reaching the resistance levels at
1.0300 and 1.0350. There is a Bullish Confirmation Pattern on the 4-hour chart.
The bullish outlook would be valid as long as the price does not go below the
support levels at 1.0050 and 1.0000.


GBP/USD: This pair has come down
200 pips this week. Now it is below the distribution territory at 1.2300. There is a
Bearish Confirmation Pattern on the chart and the accumulation territories at
1.2250, 1.2200, and 1.1150 before the end of this month. Long trades are not
recommended in this market at this period.


USD/JPY: This is a flat market
and no directional movement has been carried out so far this week. Right now,
it is OK to stay away from the market because there are mixed signals –
the EMAs 11 and 56 are giving bullish signs, while the RSI period 14 is
giving bearish signs.


EUR/JPY cross is a trendless market in the near time. The price has consolidated so
far this week, but a rise in momentum will happen before the end of the year,
which would be a surprise. A closer look at the market reveals some bullish
attempts. The expected direction in the market is bullish when momentum does
arise. Bearish corrections in this market should be taken as opportunities to
go long.


The material has been provided by InstaForex Company – www.instaforex.com