Daily analysis of major pairs for May 5, 2014

The Cable remains a bull market. The distribution territory at 1.6900 would soon be breached to the upside.

EUR/USD: This is a bull market in spite of the volatile movement that was experienced last Friday. The support lines at 1.3850 and 1.3800 would proffer some difficulties for the bears, especially when they try to push the price downwards. The target for this week is at the resistance line of 1.3900.

USD/CHF: The USD/CHF is a bear market, plus the volatile movement that occurred on Friday did not succeed in overriding the bearish outlook. The USD/CHF is below the resistance level at 0.8800, going downwards. The first target for this week is at the support level at 0.8750. When the price succeeds in breaching the support level to the downside, it may then target another support level at 0.8700.

GBP/USD: The Cable remains a bull market. The distribution territory at 1.6900 would soon be breached to the upside. This distribution territory has been challenged before the current minor pullback which has failed to take the price below the accumulation territory at 1.6850.

USD/JPY: This currency trading instrument has been difficult to trade in recent times. Swing and position traders may need to wait for the momentum that is expected this week, before they take a position. The dominant bias in the market is currently neutral. The price broke above the supply level at 102.50, testing the supply level at 103.00. This has proven to be a false breakout because the price was unable to stay above the supply level at 102.50. It needs to break above this supply level and remain above it or below the demand level at 102.00 and remain below it before we can have a sustained breakout.

EUR/JPY: This market has been able to maintain the bullish bias on it. The bullish bias is not yet strong, but it would become noteworthy when the price breaks the supply zone at 142.00 to the upside or the demand zone at 141.50 to the downside.

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