FX.co ★ Daily analysis of major pairs for July 2, 2014

EUR/USD: The EUR/USD has got corrected before it could breach the resistance line at 1.3700 to the upside. A short-term trader may want to go long when the price tests the support line at 1.3650. Should the bearish correction become strong enough, the price might go downwards towards the support line at 1.3600. With this, the bullish bias would still be valid; only a movement below the support line at 1.3600 would render the bullish bias invalid.

USD/CHF: There is also a shallow bullish reversal on this pair, though the dominant bias is bearish. In a worse-case scenario, the bullish reversal ought to be contained at the resistance level of 0.8900. From there, the price may fall further downwards.

GBP/USD:  Unlike its EURUSD counterpart that pulled back at a noteworthy resistance line, this currency trading instrument has refused to relent in its current effort to break the distribution territory at 1.7150 to the upside. The goal would eventually be realized – the distribution territory would soon be breached to the upside.

USD/JPY:  The rally (in the context of a downtrend) on this market has given a good opportunity to go short again. The price has assumed another bearish stance, and the price is below the EMA 56, while the RSI period 14 is below the level 50.

EUR/JPY:  After the EUR/JPY tested the supply zone at 139.00 several times, it pulled back slightly. The pullback may be contained at the demand zone at 138.50, after which it might go up again.  A movement below the demand zone would result in a serious threat to the extant bullish signal.