Daily analysis of major pairs for December 31, 2015

EUR/USD: This currency pair has only moved sideways this week so far. It would be better to stay off the market because the price action does not show supremacy of bulls or bears at the moment. Momentum would return to the market early next week, which would make the price go either above the resistance level of 1.1000 or below the support level of 1.0850.

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USD/CHF: This currency trading instrument is generally in an equilibrium phase, though the current price action is a threat
to an ongoing bias. A move above the resistance level of 1.0000 would result
in invalidation of the bearish bias in the market leading to a Bullish
Confirmation Pattern. If the price fails to do this, the price is likely to continue
its southward effort when there is a breakout in the market.

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GBP/USD: The GBP/USD pair simply went
flat on Wednesday. The bias is strongly bearish on the market, and the current
upwards bounce is simply a rally in the context of a downtrend. The
accumulation territory would be tested again: it could even be breached to the
downside this week or next week.

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USD/JPY: What has happened this week is best called a
‘base.’ Indeed, the price has formed a base, which is likely to send the price either south or north, depending on what happens to the yen next week. An
upturn is much more likely in the market.

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EUR/JPY: Here, the EMA 11 is below the EMA 56, and the
RSI period 14 is below the level of 50. There is a Bearish Confirmation Pattern in
the market; and therefore, further bearish movement on the EUR/JPY is not ruled
out.

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

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