FX.co ★ Daily analysis of major pairs for June 26, 2014

EUR/USD: The weakness of the EUR is impeding the possibility of a significant rally in this market. The market is bullish but the upward move is not significant. However, the EUR is still stronger than the USD; plus the EUR/USD pair just has to go into a negative correlation with the USD/CHF. The resistance line at 1.3650 has been tested, prior to the current hollow dip in the chart. Eventually, the market needs to break that resistance line to the upside and close above it, so that the upward bias can become significant, as it should be.

USD/CHF: In spite of the recalcitrant volatility on it, the USD/CHF pair has continued its downward move, and it could soon test the support level at 0.8900. As it was said earlier this week, any corrective rally would be limited in nature because the odds of the price going lower are higher than its odds of it going upwards. Moreover, one should pay attention to some of the economic figures coming out today.  

GBP/USD:  So far in this week, this currency trading instrument has been bearish in the context of an uptrend. Normally, the GBP/USD ought to be positively correlated to the EUR/USD, and so, the price could go up, especially if it does not break the accumulation territory at 1.6950 to the downside.

USD/JPY:  The signal on this pair is bearish, but the bearish move should be limited according to the recent price action. Short-term traders may want to sell and put their target at the demand level of 101.50.

EUR/JPY:  This cross is bullish; though slow and tardy. It is expected to go more upwards, reaching the supply zone at 139.00.