FX.co ★ Daily analysis of major pairs for February 28, 2014

EUR/USD: In spite of the temporary pullbacks that were seen on this pair in this week, it has been able to maintain the bullish bias on it. However, the situation is currently dangerous for the bulls and long trades are not recommended unless the price crosses the resistance line at 1.3750 to the upside. Any movement below the demand line at 1.3650 would really change the bias in favor of the bears.

USD/CHF:  Interestingly, there is still a clean bearish signal in the chart and the price is expected to continue to go further south (in spite of the recent transitory rallies in the market). Our ultimate target is situated at the support level of 0.8850 – which may be reached today or next week.

GBP/USD:  This is a bull market which has continued to consolidate to the upside, for a bullish run is highly likely when momentum returns to the market. The price territory at 1.6700 is an easy target for buyers. But the ultimate target is at the distribution territory of 1.6800. This is also the potential target for next week. After all, price tested that distribution territory in this month.

USD/JPY: The USD/JPY is now trading below the supply level at 102.00. This has led to a Bearish Confirmation Pattern in the chart, and as such, a ‘sell signal’ is in place. With the continuation of the selling pressure, the price may eventually reach the demand level at 101.00 today or next week.

EUR/JPY: The recent bullish outlook on this cross has been rendered invalid and the price can go further downwards, trading below the demand zone at 139.00.