06.02.201410:19 Forex Analysis & Reviews: Daily analysis of major pairs for February 6, 2014

EUR/USD: This is a bear market in spite of the sideways movement on it and the bulls’ intent. With an expected increase in the bearish pressure, the price should be able to breach the support line at 1.3500 to the downside, going further downward. The EMA 56 is a hurdle to the bulls’ intent.

USD/CHF: This is a bull market in spite of the sideways movement on it and the bears’ intent. With an expected increase in the bullish pressure, the price should be able to test the resistance level of 0.9100 to the upside, going further upwards (this week or next week). The support level at 0.9000 is a hurdle to the bears’ intent.

GBP/USD: On the Cable, further bearish attempt has met a challenge at the accumulation level of 1.6250, but the price could go back to test that level again. The market is bearish as long as it is below the distribution territory at 1.6400. In addition, the fundamental figures coming out today would have impact on the markets.

USD/JPY: There is a kind of equilibrium phase in this market, although the overall bias is bearish. There is a need for the price to challenge and overcome the demand level at 101.00, so that the bearish outlook in the market can continue to make sense. Short trades would be preferable.

EUR/JPY: Generally, this currency cross is trying to recover the little loss it has seen this week. This attempt has been very limited – for the power of the bulls is limited in this market. The demand zone at 136.00 is the ultimate target for this week or next week, but there could be certain pullbacks before the target is reached.