Daily analysis of major pairs for August 29, 2014

EUR/USD: This is still a bearish trading instrument in spite of the visible struggle between the bulls and the bears. Any rallies here simply proffer opportunities to open short trades. The market is forming a base and there would soon be a breakout; either in favor of the bulls or the bears. However, a breakout in favor of the bears could be expected.

USD/CHF: This currency trading instrument is still quite strong. There is a Bullish Confirmation Pattern in the market and the price could go further upwards to test the resistance level at 0.9200.

GBP/USD: The Cable is still considered weak, although the price has failed to go downwards significantly this week. The only condition that would show that the bearish outlook is over is a situation in which the EMA 11 crosses the EMA 56 to the upside, and the RSI period 14 crosses the level 50 to the upside.

USD/JPY: This pair is becoming somehow weak in the context of an uptrend. The RSI period 14 has already given a ‘sell’ signal, but it would be wise to wait for the price to cross the EMA 56 to the downside before one takes a bearish position.

EUR/JPY: In spite of the volatility in the market, the EUR/JPY is bearish. The market may go further downwards, reaching the demand zone at 136.00. This would be true especially in the face of more stamina in the Yen.