FX.co ★ Daily analysis of major pairs for August 22, 2014

EUR/USD:  There is now a shallow rally in the context of a downtrend. That rally is simply an opportunity to open another short trade and ride the market further southwards. The resistance line at 1.3300 is the nearest check to the current shallow rally.

USD/CHF: There is a fleeting pause on the USD/CHF, following the break of the stubborn support level at 0.9100 to the upside. After the pause, the market may resume its northward journey and hit the resistance level at 0.9150.

GBP/USD: There is still a Bearish Confirmation Pattern on the Cable, and so, long trades are not yet sensible. A trend is not over until it is actually over. It is possible that the price would test the accumulation territory at 1.6650. This assumption was true of yesterday and it has not changed for today.

USD/JPY:  Yes, this is a strong market that should continue to go upwards. The USD is very strong, and the JPY is very weak. The price is above the EMA 56 and the RSI period 14 is above the level 50. The price could continue going upwards to test the supply level at 104.00.

EUR/JPY: The EUR/JPY cross is now very close to the supply zone at 138.00. With the continuation of the bullish strength, the supply zone would be breached to the upside. After this happens, the next target would be the supply zone at 138.50. Meanwhile, the demand zone at 137.00 is a barrier to any bearish pulls that may happen along the way.