FX.co ★ Daily analysis of major pairs for May 27, 2014

EUR/USD: In a context of an uptrend, this pair has rallied so far this week. The rally is, nevertheless, insignificant and it should not go above the resistance line at 1.3700. From that resistance line, or before the price reaches the line, it is expected that the southward journey may resume, possibly taking the price towards the support line at 1.3600.

USD/CHF: Last week, this pair managed to close above the resistance level at0.8950, but it could not remain above it. There has been a shallow movement towards the south – which might be seen as a good opportunity to go long. Generally, the pair should not go below the support level at 0.8900 (in a worse-case scenario for the bulls). For the bullish trend to remain valid, the price should close again above the resistance level at 0.8950, even going far above it.

GBP/USD:  The condition on this currency trading instrument requires tact. The overall tendency in the market is towards the north. A close look at the market reveals that the price has better chances of going northward than going southward. This would even become more conspicuous when the price goes towards the distribution territory at 1.6900.

USD/JPY:  The USD/JPY is currently testing the supply level at 102.00, which ought to be broken to the upside so that the uptrend can continue. Failure to break the supply level to the upside could result in a noteworthy pullback in the direction of the south. Whether the bulls win or the bears win, a serious movement is expected today.

EUR/JPY:  The established bullish bias in the market is not yet overridden, unless the price goes above the supply zone at 139.50. It still remains logical to seek short trades.