FX.co ★ Daily analysis of major pairs for August 21, 2014

EUR/USD: Because of the stamina in the Greenback, this trading instrument has no change of going upwards. In fact, any rally that is seen in the market is an opportunity to open another short trade, selling at a slightly higher price.

USD/CHF: We are still talking about the stamina in the Greenback: when the EUR/USD pair goes down, USD/CHF goes up. Therefore, it is no surprise that the USD/CHF pair is trading above the support level at 0.9100. The next target is the resistance level at 0.9150.

GBP/USD: There is still a Bearish Confirmation Pattern on the Cable. So, long trades are not sensible yet. A trend is not over until it is actually over. It is possible that the price would test the accumulation territory at 1.6650.

USD/JPY: The strength in the USD is clearly visible. For example, the USD/CHF and the USD/JPY have been racing northwards, and the trend is likely to continue. Moreover, more fundamental figures are expected today and they would have impact on the markets. This pair has gone upwards by up to 160 pips this week. The supply level at 104.00 would soon be tested after the current shallow pullback finishes its course. That supply level could even be breached to the upside.

EUR/JPY: On the whole, the Euro remains weak. However, as a result of more weakness in the Yen (the Yen is weaker than the Euro), this cross has broken out to the upside. The movement above the demand zone at 137.50 means the trend is now completely bullish.