FX.co ★ Daily analysis of major pairs for August 27, 2014

EUR/USD: This is a bear market, and the price is trading below the resistance line at 1.3200. There is a high probability that the price may reach the support line at 1.3150. Should there be any rally in the chart, it could take the price towards the aforementioned resistance line. When the price goes above the resistance line at 1.3250, it would mean that the bearish outlook is over.

USD/CHF: After the gap on it, USD/CHF has been trying to resume its northward journey. It may test the resistance level at 0.9200. The Bullish Confirmation Pattern in the chart underlines the possibility of further northwards journey. The support level at 0.9100 is acting as a barrier to any pullbacks along the way.

GBP/USD: The Cable is now trading below the distribution territory at 1.6550. It has the potential to test the accumulation territory at 1.6500. The overall bias is bearish – a long term trend; and this may continue.

USD/JPY: This currency pair has been able to maintain its bullish bias so far this week. The price is above the EMA 56 and the ADX period 14 is above the level 50. The pair is now above the demand level at 104.00 – the next target is at the supply level of 104.50.

EUR/JPY: EUR/JPY has continued its downward journey which started on Friday, August 22, 2014. Since it tested the supply zone at 138.00, the price has dropped by nearly 100 pips, and this has resulted in new ‘sell’ signal. The price may go further downwards toward the demand zone at 136.50. However, this would happen only as the euro continues its weakness.