07.05.201404:51 Forex Analysis & Reviews: Daily analysis of major pairs for May 7, 2014

EUR/USD: This is a bull market, for there is a Bullish Confirmation Pattern in the chart. The market rose up above the support line at 1.3900 and tested the resistance line at 1.3950. The resistance line may be tested again and possibly be breached to the upside. Therefore, the ultimate target for this week is at the resistance line at 1.4000.

USD/CHF: This is a bear market, since there is a Bearish Confirmation Pattern in the chart. The market went down below the resistance level at 0.8750, trying to go towards the support level at 0.8700. There is a rally at the present, but it is shallow and it may not go beyond the aforementioned resistance level or the level at 0.8800 (in a worse-case scenario).

GBP/USD: The Cable moved up significantly yesterday, in accordance with the dominant bias. The distribution territory at 1.700 would soon be tested and may be breached to the upside. There are accumulation territories at 1.6950 and 1.6900. They ought to do a good job by checking an ensuing bearish pulls.

USD/JPY: It is not a surprise that this currency trading instrument has formed a bearish signal, trading below the supply level at 102.00 and going towards the demand level at 101.50. The demand level could be violated, and then beached to the downside. The next target could be the demand level at 101.00.

EUR/JPY: It would be better to remain neutral here until there is a determined movement in the market. The market is flat and there is a need for it to break the supply zone at 142.00 to the upside or the demand zone at 141.50 to the downside.