FX.co ★ Daily analysis of major pairs for July 17, 2014

EUR/USD: The EUR/USD has gone beyond our initial target for this week. The market is now trading below the resistance line at 1.3550 and it may soon reach the support line at 1.3500. Some of the fundamental figures coming today would affect the USD, and would thus affect the EUR/USD.

USD/CHF: This pair, in contrast to, and in negative correlation with the EUR/USD, has gone upwards. It was said that the trend would be strong upon a breach of the support level at 0.8950. That is exactly what has happened. The price is now trading above the support level, going to the resistance level at 0.9000. The resistance level is a formidable threat to the continuation of the bullish effort and the price may pull back from that area. Thus, buyers may want to take their profits at that resistance level.

GBP/USD:  Unlike the EUR/USD and the USD/CHF, the Cable is still in an equilibrium market. However, the price still has a high probability of going upwards further, breaking the distribution territory at 1.7150 to the upside. Any break below the accumulation territory at 1.7100 may put the bullish outlook in jeopardy, especially when the price stays below that accumulation territory.

USD/JPY:  Unlike most other JPY pairs, this market has not gone down significantly. This is owing to the strength in the Greenback, but the upwards move may be limited, for the pair could break down before it reaches or after it reaches the supply level at 102.00.

EUR/JPY:  This is a weak market, forming a Bearish Confirmation Pattern. The price is below the EMA 11, which also below the EMA 56, The RSI period 14 is below the level 50. The price ought to stay below the market area at 137.50.