14.03.201410:53 Forex Analysis & Reviews: Daily analysis of major pairs for March 14, 2014

EUR/USD: Our target at 1.4000 has not been reached because the price pulled back from the resistance line at 1.3950. The bullish bias is still valid on the EUR/USD, and therefore, that drop is seen as a transient sale in the price. The price could thus rally massively again. Only a drop below the support line at 1.3800 could render the current bullish scenario invalid.

USD/CHF: On this currency trading instrument, the present rally is an opportunity to go short at a better price. Yes, this is a rally that gives a short-selling opportunity, unless the market breaches the resistance level at 0.8800 to the upside. At least, the price is supposed to test the support level at 0.8700 again.

GBP/USD: This is a bear market, the weakness in the Cable could continue as it is. Although, the weakness is not that significant, it is probable that when a greater momentum returns to the market, it could push the cable further southward.

USD/JPY: There has been a significant drop in the price of the USD/JPY, and the price is now very close to the demand level at 101.50. Since the yen is a counter-cyclical currency, the economic issues in Japan would only strengthen the currency. The new bearish bias has been confirmed and it pays to ride one’s short order until it reaches the demand level at 101.00.

EUR/JPY: There are new bearish signals on the JPY pairs. For instance, the EUR/JPY dropped from the supply zone at 143.00, leading to a Bearish Confirmation Pattern. The drop was more than 270 pips this week. The best thing to do now is to seek short trades, preferably shorting short-term rallies.