FX.co ★ Daily analysis of major pairs for August 6, 2014

EUR/USD: As it was expected, the recent rally on the EUR/USD has turned out to be a shorting opportunity in the market. The market has continued its weakness: it would easily test the support line at 1.3550. With further weakness on the pair, another support line at 1.3500 could also be tested. That is, after the support line at 1.3550 has been breached to the downside.

USD/CHF: The USD/CHF has been able to continue its strength, testing the resistance level at 0.9100 again. With enough bullish determination, the resistance level could be breached to the upside as the price reaches for another resistance level at 0.9150. Should the price fail to accomplish this, another deep correction could begin.

GBP/USD:  There is still a rally on this currency trading instrument; which should be a short-selling opportunity. The price might not go above the distribution territory at 1.6950 (otherwise the current bearish outlook would be rendered useless). With renewed weakness in the market, the price could go on to test the accumulation territory at 1.6800.

USD/JPY:  The Bullish Confirmation Pattern in the chart is still valid, unless this pair goes below the demand level at 102.00. For the bulls to continue holding sway, the price needs to test the supply level at 103.00, even breaking it upwards.

EUR/JPY:  As a result of the weakness in the EUR, this cross has become weak again. The recent bullish signal in the chart is now under threat, and a fall below the demand zone at 137.00 would mean that the bullish signal is not sensible again.