Daily analysis of major pairs for May 26, 2017

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EUR/USD: This pair has moved
between the support line at 1.1150 and the resistance line at 1.1250 (which has
been tested several times this week). The resistance line is supposed to be
breached to the upside as the market trends upwards. When that happens, the
next target would be the resistance line at 1.1300.

USD/CHF: A bearish signal remains on the USD/CHF pair, although price has moved largely sideways this week (in the context of a downtrend). A rise in momentum is anticipated, which would happen today or next week, and which would most probably favor bears.

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GBP/USD: This market has
already generated a “sell” signal. As it was forecasted at the beginning of
this week, bearish movements on certain other GBP pairs have forced a bearish
propensity on GBP/USD. The EMA 11 is below the EMA 56, and the RSI period
14 is below the level 50. We may see drop of at least, 200 pips between now and
the end of next week.

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USD/JPY: The USD/JPY pair has been consolidating to the
upside, and this has resulted in a threat to the short-term bearish bias on the
market. A movement above the supply levels at 112.50 and 113.00 would result in
a Bullish Confirmation Pattern on the 4-hour chart. Then, the indicators on the
chart would have all supported a rally. Only the RSI period 14 is giving a bullish
signal right now.

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EUR/JPY: This cross pair has
also consolidated so far this week, though there is still a bullish outlook on
the market. A breakout to the upside is expected today or early next week,
which may enable the supply zones at 125.50, 126.00, and 126.50 to be tested.
Since the market is currently quiet, there could be a measure of high
volatility next week.

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

Source:: Daily analysis of major pairs for May 26, 2017

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