FX.co ★ Daily analysis of major pairs for May 13, 2014

EUR/USD: The EUR/USD is a bear market. The market remains weak as the price tests the support line at 1.3750. The test has resulted in a rigorous challenge, and it is possible for the support line to give way. Should this happen, the next target would be the support line at 1.3700.

USD/CHF: In contrast to what the EUR/USD is doing, this pair is trending upwards with a strong determination. The pair is now trading above the support level at 0.8850, going towards the resistance level at 0.8900. It is even possible that the resistance level would be slashed upwards, as the price closes above it.

GBP/USD:  The Cable is weak, but its weakness is not as strong as that of the EUR/USD. There is a bearish indication in chart. Nevertheless, the bulls are trying their best to halt the southward progress, which has resulted in a rally in the context of the current downtrend. As long as the price stays below the distribution territory at 1.6900, it would be assumed that the price could fall further.

USD/JPY:  The price action on the USD/JPY has resulted in a ‘buy’ signal.  The price is now trading above the demand level at 102.00, targeting the supply level at 102.50. The aforementioned demand level should act as a hurdle to possible pullbacks along the way. When our target at 102.50 is reached and breached to the upside, the next target would be at the supply level of 103.00.

EUR/JPY:  So far since the open of the market this week, there has been a rally in the context of strong downtrend. The price could fall further unless it crosses the supply zone at 141.00 to the downside.