FX.co ★ Daily analysis of major pairs for July 29, 2014

EUR/USD: This is a bear market, and in contrast to what the USD/CHF is doing, the market is going downwards. The price is below the resistance line at 1.3450, going towards the support line at 1.3400. The aforementioned resistance line should serve as obstruction to any short-term rallies on the way.

USD/CHF: The current consolidation phases in the markets are supposed to be short-lived because momentum would return to the markets. For instance, the USD/CHF could retest the resistance level at 0.9050. The bias on the pair is bullish and this is expected to continue. When the resistance level is broken to the upside, the next target would be another resistance level at 0.9100. This is a point at which the price could turn downwards later. But right now, enjoy the bullish ride.

GBP/USD:  The Cable is currently weak – with the Bearish Confirmation Pattern in the market. The market is below the distribution territory at 1.7000. This distribution territory is supposed to serve as an impediment to any rallies along the way (which could jeopardize the extant bearish bias). When the bearish bias continues, the accumulation territory at 1.6950 would be tested.

USD/JPY:  The USD/JPY is currently a strong currency trading instrument. However, the bullish run would be limited and intraday bulls might want to take their profits at the supply level of 102.00.

EUR/JPY:  Like a few other JPY pairs, this market is weak and the weakness is supposed to continue. The market could test the demand zone at 136.50 again.