FX.co ★ Daily analysis of major pairs for August 1, 2014

EUR/USD: This market remains weak, and it would continue to be so because of the perceived weakness in the EUR and the perceived strength in the USD. There could be some rallies in the market, which would be temporary even if the price tests the resistance line at 1.3450. The price may end up testing the support line at 1.3350 today or next week.

USD/CHF: This market remains strong, and it has tested the resistance level at 0.9100. This is an area where certain bulls would want to take their profits, for there is an expectation of some bearish correction in the market. For the bearish correction not to pose a threat to the bullish outlook on the market, it must not take the price below the support level at 0.9050. Meanwhile, the aforementioned resistance level should be broken to the upside, if the bullish bias is to continue.

GBP/USD: This is also a weak market – with a very strong bearish bias on it. The market should continue to be bearish, going towards the accumulation territory at 1.6850 (an easy target for the bears).

USD/JPY: The weakness in the Yen and the present energy of the Greenback has caused a Bullish Confirmation Pattern on this currency trading instrument. The price is above the EMA 56 and the RSI period 14 is above the level 50. The price needs to stay above the demand level at 120.50, so that the bullish outlook can continue to be valid.

EUR/JPY: The EUR/JPY was able to break the demand zone at 137.50 to the upside. The price needs to stay above that demand zone so that the new bullish bias could continue to be valid. Any movement below the demand zone could override the new bullish signal. The next target for the bull is at the supply zone of 138.00.