FX.co ★ Daily analysis of major pairs for May 20, 2014

EUR/USD: This is a bear market and the indication in the chart is in support of the sellers. This pair would retest the support line at 1.3650. This support line was tested last week: it could be breached to the downside this week. The Bearish Confirmation Pattern in the chart ensures that the sellers are confident of being in the right direction of the market.

USD/CHF: The USD/CHF is still in an uptrend and it would retest the resistance level at 0.8950. This resistance level was tested last week: it could be breached to the upside this week. The Bullish Confirmation Pattern in the chart ensures that the indication in the market is in the favor of the bulls.

GBP/USD: The Cable is currently moving in a range, although that is happening in the context of a downtrend. The price currently hovers between the distribution territory at 1.6850 and accumulation territory at 1.6800. Either of the territories must be breached so that the price can continue its journey. One thing is this; it is more probable that the price would continue journeying downwards.

USD/JPY: The pair is bearish – an established bearish outlook. The price is now trading below the supply level at 101.50, going toward the demand level at 101.00. Actually our target for the week is at the demand level of 100.50.

EUR/JPY: This is also a bear market, with barriers to any short-term rally being situated at the supply zones of 139.00 and 139.50. Meanwhile, the price could go on towards the demand zone at 138.50, even breaching it to the downside.