Daily analysis of major pairs for February 4, 2014

EUR/USD: This
pair remains a weak market irrespective of the rally that is currently taking
place on it. As long as the price stays below the resistance line at 1.3600, it
is safe to assume that the bears are in control. The support line 1.3500 was
once breached and it will likely be breached to the downside again, especially
as the price continues to trade downwards.

USD/CHF:  This pair remains a bull market irrespective
of the bearish correction that has started on it since the beginning of this
week. The bullish outlook is not yet over, except the price trades below the support
level at 0.8950. As long as the price stays above the support level at 0.8950,
it is safe to assume that the bulls are in control. The resistance level at
0.9050 was once breached and it will likely be breached to the upside again,
especially as the price continues to trade upwards.

GBP/USD:  On the Cable, the exponential weakness that
began last week has become seriously significant. This week so far, the price has
dipped by over 160 pips, plus the price could still continue towards the
accumulation territory at 1.6200.

USD/JPY: With the
Bearish Confirmation Pattern in the chart, the USD/JPY continues to go south.
The price is now trading below the supply level at 101.00. While it is possible
that the supply level could be challenged by the bulls, the price may go
further to touch the great demand level at 100.00.

EUR/JPY: As it
was said before, this cross has been bearish all this New Year and this week is
no different so far. Historical data shows that buying rallies in the downtrend
works. A rally that proffers a ‘buy’ opportunity may soon occur.  

The material has been provided by InstaForex Company – www.instaforex.com