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Sunday, August 3, 2014

Daily analysis of major pairs for August 4, 2014

The USD/JPY pulled back seriously after testing the supply level at 103.00. For the bullish bias to remain valid, the price must stay above the demand level at 102.00.  

EUR/USD:  This is a bear market in spite of the rally that occurred in the market on Friday, the rally is seen as a good opportunity to sell short in the context of a downtrend. Only a movement above the resistance line at 1.3450 would render the bullish bias invalid. The price has the potential to go further downwards towards the support line at 1.3350.


USD/CHF: This currency pair is still considered strong despite the pullback that is being shown on it. The strength in the market would still make sense as long as the price is above the support level at 0.9000. From the current price position (the support level at 0.9050), the price could go upwards towards the resistance level at 0.9100 again.

GBP/USD:  The Cable remains a weak instrument, with very little determination to go north. The determination to go south is far stronger and the price may test the accumulation territories at 1.6800 and 1.6750 this week.

USD/JPY:  The USD/JPY pulled back seriously after testing the supply level at 103.00. For the bullish bias to remain valid, the price must stay above the demand level at 102.00. Any movement below the demand level at 102.00 would put the bullish bias in jeopardy, meaning that long trades would no longer be sensible. For the bullish bias to continue, the price must again test the supply level at 103.00, even breaking it to the upside.

EUR/JPY:  On Friday, August 1, 2014, this crossed closed at 137.78. As a result of the sudden weakness in the Yen, the cross has been given a new lease of energy. Long trades now make sense, for the price has possibility that it could reach the supply zone at 138.50 in this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group




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