FX.co ★ Daily analysis of major pairs for August 14, 2014

EUR/USD: The Bearish Confirmation Pattern in the chart is still valid, but the bearish movement so far this week is not as strong as the bearish movement on the GBP/USD pair. Yesterday, the market was very volatile – a result of the deadly struggle between the bull and the bear. At last, the bear succeeded in bringing down the price to conform to the bearish outlook. Further downward journey is expected from here.

USD/CHF: The bias on this pair is bullish. The EMA 11 is still above the EMA 56 and the Williams’ % Range shows the propensity to go around the overbought territory. Similar to what happened to EUR/USD, the serious battle between the bull and the bear ended up with the victory of the bull because the price action in the chart still supports the northward outlook. The price may test the resistance level at 0.9100 again.

GBP/USD: The Cable went down further yesterday, and the Bearish Confirmation Pattern in the chart is very strong right now. This week, the pair has dropped by more than 110 pips, going below the distribution territory at 1.6700. Although our target for the week has been hit, the next target is at the accumulation territory of 1.6650. More fundamental figures are coming today and they would have some impact on the markets.

USD/JPY: This pair is going upwards, as predicted yesterday. It may reach the next supply level at 103.00 This would be a great feat if it is achieved. After all, the supply level was tested two weeks ago.

EUR/JPY: The bullish attempt on this cross is getting serious enough to render the general bearish outlook invalid. When the price closes above the supply zone at 137.50, the bearish outlook would become illogical.