FX.co ★ Daily analysis of major pairs for April 4, 2014

EUR/USD: This pair has been bearish so far in this week, irrespective of the bullish attempt that happened on it at the beginning of the week. The bullish attempt has turned out to be a good opportunity to go short in the market. Right now, the support line at 1.3700 is under a determined siege. The battering is getting too much for the support line to bear, so it would not be a surprise when the support line is easily breached to the downside as a result of the heavy selling pressure in the market.

USD/CHF: On the USD/CHF, our target at 0.8900 has already been exceeded. The price is still going northwards and it would be possible for it to test the resistance level at 0.8950. The Bullish Confirmation Pattern in the chart is very conspicuous, plus the northward bias is aided by the new lease of stamina in the USD.

GBP/USD:  The strength of the USD is so noticeable that it is able to drag the Cable down. The market has found it very difficult to go northward this week and it is thus yielding to gravity. The action is serious enough to jeopardize the recent bullish outlook, and a movement below the distribution territory at 1.6550 would result in a confirmed bearish bias.

USD/JPY:  There is a kind of consolidation in the market but the bullish bias could resume. At least, the bullish bias might hold out till next week. The supply level at 104.00 has been tested, and it could be tested again and get breached to the upside.

EUR/JPY: The weakness of the EUR is affecting the movement on the cross – which is showing some sign of weakness. As long as the price is able to stay above the demand zone at 142.00, it would be safe to say that the bullish bias is intact.