FX.co ★ Daily analysis of major pairs for March 7, 2014

EUR/USD: There is a Bullish Confirmation Pattern on this pair and it is currently above the support line at 1.3850. The indicators in the chart support this strong bias, which would continue. The price is poised to trend further upwards, possibly reaching the reaching the resistance line at 1.3900.

USD/CHF: The ‘buy’ signal that was generated on the USD/CHF on March 6, 2014 has proven to be a bogus signal. Before the price could reach the resistance level at 0.8900, a sudden weakness in the USD caused the price to plummet – dropping like a stone. The price is currently trading below the resistance level at 0.8800, going towards the support level at 0.8750.

GBP/USD: As expected, there has been a bullish breakout on this currency trading instrument; something that has led to an established bullish outlook. However, the bulls’ power is not very conspicuous right now. The present retracement in the price can be contained at the accumulation territory of 1.6700: meanwhile our near-term target is at the distribution territory at 1.6800.

USD/JPY: Like other JPY pairs, this market also skyrocketed, slashing through the price level at 103.00. There is a slight southward retracement here, but it should be temporary because the bullish trend could resume.

EUR/JPY: The JPY pairs are currently part of the most trending Forex trading instruments. For example, the EURJPY rallied from a weekly low at 139.14 and topped at the supply zone of 143.00. This represents a move of over 380 pips! Normally a pullback or consolidation may occur, after which the bullish trend will continue.