21.05.201411:34 Forex Analysis & Reviews: Daily analysis of major pairs for May 21, 2014

EUR/USD: This is a weak pair, although it has been trying to consolidate to the upside so far in this week. The upside consolidation should be halted at the resistance line of 1.3750; otherwise the bearish outlook would be in a serious jeopardy (especially as the weak pair becomes a strong one).

USD/CHF: The market made a weak bullish attempt this week, but this resulted in a shallow bearish retracement, which should not take the price below the support levels at 0.8900 and 0.8850. A movement below the support level at 0.8850 could render the bullish bias useless, but as long as the price is above it, it would be safe to think the market is bullish.

GBP/USD: In the context of a downtrend, the GBP/USD has been trying to go upwards – with a meager 40 pips. The upwards attempt is limited by the bears’ stubbornness, and should the bulls become fed up, the price may drop from there. When the price closes above the distribution territory at 1.6850, and the EMA 11 crosses the EMA 56 to the upside, a new bullish signal would form.

USD/JPY: There is a significant bearish outlook on the USD/JPY. The demand level at 101.00 has been attacked violently, and the price has a high possibility of closing below it at last. Once this is done, the price would target the next demand zone at 100.50, which would be our next target in this bear market.

EUR/JPY: This currency trading instrument has a bearish trend on it. The EMA 11 is below the EMA 56 and the RSI period 14 is below the level 50. The price may continue to go lower.