FX.co ★ Daily analysis of major pairs for May 30, 2014

EUR/USD: The Bearish Confirmation Pattern on this pair remains intact. It has been proven that a sell-on-rally approach is a beneficial trading approach right now. There is a resistance line at 1.3650, which should make any possible rally limited in strength. Meanwhile, the price would soon go towards the support line at 1.3550 to test it (after breaching the support line at 1.3600 to the downside).

USD/CHF: Here, the indication is also bullish – as it has been for a few weeks. The EMA 11 is above the EMA 56 and the Williams’ % Range period 20 is close to the overbought region. This shows an ongoing strength in the market, and the price could reach the resistance level at 0.9000.

GBP/USD:  This market has become bearish (though it was bullish last week) as a result of the fact that the price was unable to go above the distribution territory at 1.6900. Now the price has dived by 200 pips, testing the accumulation territory at 1.6700. The present upward bounce in the market is another opportunity to go short.  

USD/JPY:  This market is a bit difficult, making short-term upswings and downswings. The most probable direction is towards the south; and in fact, there is a bearish signal in the chart, which may take the price towards the demand level at 101.00 over the next several days.

EUR/JPY:  According to the expectation, the EUR/JPY has remained bearish. The cross is currently trading below the supply zone at 138.50, going to test the demand zone at 138.00. There is a high possibility that the demand zone would be breached to the downside, as the price goes further south.