FX.co ★ Daily analysis of major pairs for August 20, 2015

EUR/USD: Needless to say, the EUR/USD pair went upwards, just the opposite of what happened to the USD/CHF pair. The renewed bullish effort in the market has led to "buy" signal. Thus, bulls could target the resistance lines at 1.1150 and 1.1200.

USD/CHF: After several days of equilibrium movement, the USD/CHF pair broke out southward. This has resulted in a Bearish Confirmation Pattern and the price, having gone down by 100 pips, has tested the support level at 0.9650. The next target for bears might be the support level at 0.9600.

GBP/USD: In spite of stubborn resistance from bears, the cable continues to show its bullish determination. Since the price has been able to stay above the accumulation territory at 1.5650, bulls have been attacking the distribution territory at 1.5700. With further bullish pressure, the distribution territory could be breached to the upside and the price could stay above it.

USD/JPY: There is now a bearish outlook on the market since the price broke below the EMA 56. The RSI period 14 is also below the level 50. A test of the demand level at 123.50 would confirm bears' seriousness. In addition to this, some fundamental figures are expected today and they could have some impact on the USD.

EUR/JPY: It would still be preferable to stay away from this market. The price trended downwards on Monday and Tuesday, but the bullish effort on Wednesday has caused mixed signals on the chart. Had the price trended downwards also on Wednesday, there could have been a predictable bearish journey. Now, there is a need to wait and see what would happen next.