FX.co ★ Daily analysis of major pairs for July 31, 2014

EUR/USD: This pair remains weak – with the Bearish Confirmation Pattern that shows in the chart. The EMA 11 is below the EMA 56 and the Williams’ % Range is always around the oversold territory. The immediate resistance line at 1.3400 is a check on the bullish attempt in the market. The price could fall further.

USD/CHF: This is a strong market, which has the possibility of moving further higher. The resistance level at 0.9100 has been tested, prior to the present bearish correction. The price may go upwards to test the resistance level again.

GBP/USD:  The GBP/USD is also a weak market and the price should continue going south in spite of the presently shallow rally in it. The accumulation territory at 1.6900 has been tested and it could be retested. The accumulation territory could even be breached to the downside.

USD/JPY:  In another surprising move, the USD/JPY was able to test the supply level at 103.00. In fact, the sudden weakness in the Yen has made all JPY pairs bullish. There are some fundamental figures coming out today, and they would have impact on the markets. The pullback that has occurred after the test of the supply level is an indication that the bulls may want to take their profits now, for the price may have some difficulty in breaking that level to the upside.

EUR/JPY:  This cross has gotten a new lease of energy, not because the EUR is strong, but because the Yen is much weaker than it is. The price went upwards by over 110 pips, breaking above the demand zone at 137.50. There is a possibility that the price could test the supply zone at 138.00.