Daily analysis of major pairs for August 5, 2014

EUR/USD: The scenario on this pair is quite similar to the scenario on the Cable. The market is bearish and the latest price action shows an upward bounce – a transitory action. The bearish trend could continue when the weakness of the Euro becomes renewed, pushing the price further downwards towards the support line at 1.3350.

USD/CHF: The USD/CHF has experienced a serious (but not very deep) pullback in the context of the extant uptrend. The pullback appears to have been put on check at the support level of 0.9050. While any movement below the support level at 0.9000 would mean the end of the bullish bias, the price could go further upwards from its current level, trying to test the resistance level at 0.9100.

GBP/USD:  There is now a shallow rally on the Cable, but the rally is expected to be short-lived. The price could go further south, reaching the accumulation territory at 1.6800. The Bearish Confirmation Pattern in the chart is still a valid thing; hence the southward outlook is also valid.

USD/JPY:  This market has continued its bearish correction since it tested the supply level at 103.00. That level was tested a few times last week before the present bearish correction. For the bullish outlook to continue to make sense, the price needs to go towards that supply level again, possibly breaking it to the upside.  

EUR/JPY:  The novel northwards outlook on this currency instrument is currently facing a challenge. This is brought about by the precarious stamina in the Euro. Nevertheless, the price needs to break the supply zone at 138.00 to the upside, if the present bullish signal would continue to make sense.