FX.co ★ Daily analysis of major pairs for July 30, 2014

EUR/USD: This pair has continued its weakness, as forecasted earlier this week. The market is now trading below the resistance line at 1.3450, going towards the support line at 1.3400. Meanwhile, the above-mentioned resistance line and the one at 1.3500 would act as an obstacle to any attempts by the bulls to drive up the price.

USD/CHF: The Greenback is currently displaying a huge amount of stamina. This is also evident in the fact that it is going upwards against the Yen (in contrast to what is happening to other JPY pairs). The market is going north climbing above the support level at 0.9050. The next target is at the resistance level at 0.9100.

GBP/USD: The Cable has been going further downwards as predicted. The major outlook on the market is bearish and the price may test the accumulation territory at 1.6900. The distribution territory at 1.6950 could serve as an immediate impediment to the market effort to rally significantly.

USD/JPY: Surprisingly, the USD/JPY pair was able to break the support level at 102.00 to the upside. The price has closed above that support level and the next target in the market is now the supply zone at 102.50. In the chart, the price is vividly above the EMA 56 and the RSI period 14 is above the level 50. This is a Bullish Confirmation Pattern in the chart – something that ensures that the price goes further upwards.

EUR/JPY: This is a weak market as the overall bias is bearish. However, the movement so far this week can be termed as ‘a consolidation to the upside,’ in the context of a downtrend. This should be contained at the EMA 56.