FX.co ★ Daily analysis of major pairs for February 25, 2014

EUR/USD: This pair is a bull market and further bullish movement is anticipated. The support line at 1.3700 should do well in acting as a barrier to any possible southward pulls along the way. Meanwhile, the price should soon be trading above the resistance line at 1.3750.

USD/CHF:  The USD/CHF is a bear market and further southward movement is expected. The resistance level at 0.8950 should do well in acting as a barrier to any possible bullish rallies along the way. Meanwhile, the price should soon be trading below the support level at 0.8850.

GBP/USD:  As a result of the perpetual weakness of the Cable, there are mixed signals in this market. For example, the EMA 11 is still above the EMA 56, whereas the RSI period 14 does not support the bullish scenario. One fact is this: the bullish scenario remains intact for as long as the price is above the accumulation territory at 1.6600. Any movement below the accumulation territory (especially a price close below it) would generate short signals and short trades may then be sought.

USD/JPY: Here, the price is above the EMA 56 and the RSI period 14 is above the level 50. In spite of the equilibrium phase the price has been witnessing for the past several days, it is very much likely that when the price breaks out, it would be in favor of buyers.

EUR/JPY: On the EUR/JPY, we are watching the supply levels at 141.50 and 142.000. Why? It is because there is a clean Bullish Confirmation Pattern in the chart, and therefore, an upside breakout is expected soon. There has not been any significant northward movement for several days, but it would soon happen.