FX.co ★ Daily analysis of major pairs for August 4, 2016

EUR/USD: The EUR/USD pair assumed a dip yesterday, which, however, is yet to override the existing bullish bias. Price moved downwards by 80 pips in the context of an uptrend; and would need to go below the support line at 1.1000, before the bias can turn bearish, which requires a huge selling pressure. In case this fails to happen, price would be corrected upwards.

USD/CHF: The USD/CHF pair assumed a rally yesterday, which, however, is yet to override the existing bearish bias. Price moved upwards by 90 pips in the context of a downtrend. Price would need to go above the resistance level at 0.9850, which requires a huge buying pressure. In case this fails to happen, price would be corrected downwards.

GBP/USD: Though this currency trading instrument got corrected on August 3, 2016, the bias on the market remains bullish. Further northward movement is possible, provided bears do not force price back below the accumulation territory of 1.3150. Some fundamental figures are expected today and they could have some impact on the market.

USD/JPY: This is a bear market. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. Price is now below the supply level at 101.50; the next target for bears are located at the demand levels at 100.00, 99.50 and 99.00.

EUR/JPY: This cross is also in a bearish mode, made conspicuous by the Bearish Confirmation Pattern in the market. Price is now below the supply level at 113.00, going towards the demand zones at 112.50 and 112.00. Since the bias on the market is bearish, further bearish journey is anticipated today or tomorrow.