FX.co ★ Daily analysis of major pairs for August 28, 2014

EUR/USD: This is still a weak market – as long as the price is under the resistance lines at 1.3250 and 1.3300. Any break above those resistance lines could render the bearish outlook useless. Meanwhile, the price could test the support line at 1.3100 or break it to the downside; thus closing below it. This could happen only on the condition that the weakness in the market continues.

USD/CHF: The USD/CHF is a strong market, although the market has become seriously volatile as a result of the struggle between the bulls and the bears. As long as the price is above the support level at 0.9100, it would be rational to say that the market is bullish. Anything below that would signify the beginning of a bearish outlook.

GBP/USD: The Bearish Confirmation Pattern in the GBP/USD chart is still valid. Although the price is making a weak attempt to rally, it may go southward again. It would be safe to say that the bearish bias is logical as long as the price is below the distribution territories at 1.6650 and 1.6700. Moreover, the fundamental figures coming out today would have impact on the markets.

USD/JPY:  This currency pair has been able to maintain its bullish bias so far this week. The price is above the EMA 56 and the RSI period 14 is above the level 50. However, the bullish bias is under threat, and the threat would become more serious when the RSI period 14 crosses the level 50 to the downside and the price challenges the EMA 56.

EUR/JPY:  Since the ‘sell’ signal has been formed on this cross, long trades are currently illogical. It would be OK to seek short trades only, especially as long as the price remains below the EMA 56.