FX.co ★ Daily analysis of major pairs for April 21, 2014

EUR/USD: It is still safe to call this pair a bullish market. As long as the price is above the support line at 1.3800, the bullish outlook is valid. Any movement below that support line would mean a serious threat to the bullish outlook. It would also mean that long trades are no longer sensible. For the bullish outlook to continue, the price needs to go upwards towards the resistance lines at 1.3850 and 1.3900, especially when there is a breakout of the current equilibrium zone.

USD/CHF: USD/CHF has already generated a bullish signal: the price would easily test the resistance level at 0.8850. There is even a possibility that the price may go beyond that target, especially with an increase in the buying pressure. So, it would not be a surprise when the price reaches another resistance level at 0.8900.

GBP/USD: There is still a Bullish Confirmation Pattern on this trading instrument. The upward movement in the price has been challenged at the distribution territory of 1.6800, but the market looks determined to break that distribution territory to the upside. The market would succeed in doing this: the probability is very high. So we may be targeting another distribution territory at 1.6900 this week.

USD/JPY: The signal in the chart is a ‘buy’ signal. The indicators on the 4-hour chart confirm this. The supply level at 102.50 has already been tested, and it could be breached as the price goes further north, towards the supply level at 103.00.

EUR/JPY: This cross closed at 141.41 last week; with some bullish determination. We would like to look for long orders this week, putting initial target at the supply zone of 142.00.