FX.co ★ Daily analysis of major pairs for July 23, 2014

EUR/USD: It is intriguing that this pair has been able break the resistance line at 1.3500 to the downside. The bearish bias is now very strong, and the market could continue going further downwards. The next target is at the support line at 1.3450, which would soon be tested.

USD/CHF: There are interesting events in the markets. For instance, the USD/CHF has eventually succeeded in breaking the great support level at 0.9000 to the upside, closing above it. The price has been making attempts to go further upwards since then. The next target for the bulls is at the resistance level at 0.9050.

GBP/USD:  The outlook on this pair is now essentially bearish. The EMA 11 has crossed the EMA 56 to the downside and the RSI period 14 is below the level 50. This has resulted in a Bearish Confirmation Pattern in the chart, and the price could go more south. However, there is a need for the price to break the accumulation territory at 1.7050 to the downside, and close below it. Any movement above the distribution territory at 1.7100 would endanger the existence of this novel bearish outlook.

USD/JPY:  The momentum on the USD/JPY has been reduced. But the momentum would soon come back again to the market, and when it does, the price movement would be strong. A downward journey is much more probable here.  

EUR/JPY:  Since July 14, 2014, this currency trading instrument has dropped by over 140 pips; as a result of the strength in the JPY and the weakness in the EUR. This instrument may end up breaking the demand zone at 136.50 to the downside. After all, the demand zone has already been tested.