FX.co ★ Daily analysis of major pairs for May 1, 2014

EUR/USD: By all means, this is a bull market and short trades would be illogical at present. The price is staying above the support line at 1.3850, going towards the resistance line at 1.3900. The aforementioned support line is thus a barrier to any possible southward pulls along the way.

USD/CHF: In reality, this pair has been weakened because of the weakness in the Greenback itself. There is a ‘sell’ signal in the chart – for the trend is bearish, and the price is below the EMAs 11 and 56. The Williams’ % Range is going towards the oversold region, which means the market lacks stamina.

GBP/USD: The GBP/USD is a strong pair, and with the ability to maintain its bullish outlook. It is no wonder that the price is trading above the accumulation territory at 1.6850. The easy target is at the distribution territory of 1.6900. In spite of the public holiday in some parts of Europe, we can expect certain fundamental figures in other parts of the world: The figures would have an impact on the market.

USD/JPY: On this currency instrument, there is a supply level at 102.50 and a demand level at 102.00. Moreover, it can be seen that the market is generally in an equilibrium phase. A breakout is expected soon, and when it occurs, it is more likely to be in favor of the bears, as there is a short-term southward indication established by the price action.

EUR/JPY: This is a strong cross: the price is currently testing the supply zone at 142.00 and it may breach it to the upside. The RSI period 14 has crossed the level 50 to the upside. Long trades are currently sensible.