04.08.201508:52 Forex Analysis & Reviews: Daily analysis of major pairs for August 4, 2015

EUR/USD: The EUR/USD pair moved slightly lower yesterday, generating a bearish signal in the market. There is a possibility that the support line at 1.0900 would be tested today or tomorrow (it might even be breached to the downside). The price action shows that the pair still has much room to go south.

USD/CHF: The USD/CHF pair moved slightly upwards yesterday, leading to a continuation of a bullish signal. The resistance level at 0.9700 was tested last week without the price being able to breach it to the upside. The price is now very close to that resistance level, and with persistent buying pressure, may go above it. A failure to do that may signal the end of a bullish bias, because the price must go further upwards for the bullish bias to make sense.

GBP/USD: Volatility is currently high on the market, without bulls or bears gaining the upper hand. The price will either break above the distribution territory at 1.5650 or break below the accumulation territory at 1.5550. A breakout to the downside is the most likely.

USD/JPY: The USD/JPY pair moved sideways so far between the supply level of 124.50 and demand level of 123.00. This shows that the market is currently consolidating, and therefore, there would be a breakout to the upside or to the downside soon. In order to put an end to the current consolidation, there must be a breakout above the supply level at 124.50 or a breakout below the demand level at 123.00.

EUR/JPY: The EUR/JPY pair is still characterized by high volatility, swinging higher and lower in the context of an uptrend (things are now becoming a little choppy). The supply zones at 137.50 and 138.00 could be tested this week, though there are also demand zones around 135.50 and 135.00. A movement below the demand zone could result in a bearish bias.