16.09.201408:51 Forex Analysis & Reviews: Daily analysis of major pairs for September 16, 2014

EUR/USD: The EUR/USD is still consolidating in the context of a downtrend; but when a breakout does occur, it is more likely to be in favor of the bears. When this happens, price could go further downwards to test the support line at 1.2900 again. With sustained weakness in the market, the price may reach the support line at 1.2850. There must be a break above the resistance line at 1.3000 before it could be said that the bearish trend is over.

USD/CHF: This currency trading instrument is also still consolidating in the context of a downtrend, but when there is a bullish continuation, it could test the resistance level at 0.9400, which has been a dream target for the bulls. Attempts to reach this resistance level have been ongoing; and that is the target for this week.

GBP/USD:  The GBP/USD has been making a serious attempt to go northward. The bias is bearish in the long-term but bullish in the near-term, but it cannot be said that the bearish trend is over until the price crosses the distribution territory at 1.6300 to the upside. A breakdown in the market may bring the price downwards towards the accumulation territory at 1.6100 again.

USD/JPY:  This pair is also strong and it is currently trading above the demand level at 107.00: it could reach the supply level at 107.50. Meanwhile, the demand level at 106.50 could be a barrier to the bears’ machinations along the way.

EUR/JPY:  The bullish outlook on this cross is still extant. From the demand zone at 136.00, the price has skyrocketed by over 300 pips. The price ought to go further north. There is now a shallow bearish retracement that may be retarded at demand zone of 138.00.