FX.co ★ Daily analysis of major pairs for April 17, 2014

EUR/USD: In spite of the threat carried out by the bears, this pair remains in bull market. After a serious battle around the support line at 1.3800, the price has been able to trend a little northwards. The previously-mentioned support line would continue to act as a barrier to southward pulls.

USD/CHF: Likewise, the bearish scenario on the USD/JPY remains valid (though it also remains precarious). The EMA 56 has done a good job by acting as resistance in the market, but this does not rule out the possibility that the strength of the EMA could be tested again. It is imperative that the price will stay below the market resistance level at 0.8800, so that the bearish outlook can continue to be valid.

GBP/USD: After the shallow bearish correction that was seen on it earlier this week, the Cable has been given a new lease of energy. The pair is now trading above the accumulation territory at 1.6800, going towards the distribution territory at 1.6850, which is an easy target for the bulls. Moreover, some economic figures that would be released today would have effect on the USD, and therefore, would have affect the Cable.

USD/JPY: The rally that occurred on the USD/JPY pair has proven to be a bogus one – for the price has fallen below the EMA 56 again. The RSI period 14 also is almost going below the level 50. Long trades are no longer sensible here.

EUR/JPY: On this currency trading instrument, spurious signals and equilibrium zones have been persistent. Presently, it is difficult to say whether the bulls or the bears have a clear victory, so it is better to stay out of the market untill a clean signal comes.