FX.co ★ Daily analysis of major pairs for February 21, 2014

EUR/USD: In spite of the present bearish retracement on it, this market remains a bull market, unless the price closes below the EMA 56. The drop in the Williams’ % Range period 20 indicates an opportunity to buy long when there is a dip in the price in a context of an uptrend.

USD/CHF:  In spite of the present bullish retracement on it, this market remains a bear market, unless the price closes above the EMA 56. The rise in the Williams’ % Range period 20 indicates an opportunity to go short when there is a rally in the price in a context of a downtrend.

GBP/USD:  The Cable went seriously upwards last week, testing the distribution territory at 1.6800. From there, the price has retraced southwards by over 160 pips. However, the bullish outlook is yet to be jeopardized (except the price crosses the accumulation territory at 1.6600 to the downside). It is still expected that the price could rise up from here.

USD/JPY: The USD/JPY has been choppy recently. Nevertheless it offers short-term trading opportunities. It is better to adopt intraday strategies here, so that short-term moves can well be capitalized upon. Right now, the price is going towards the supply level at 103.00, which is the next target.

EUR/JPY: Irrespective of occasional fearful dips in this market, the northward outlook is intact. This has been limited somehow, but it is sure to be slow and steady. The price could test the supply zone at 141.00, while the accumulation zone at 140.00 should serve as a barrier to probable bearish threats.