Daily analysis of major pairs for February 6, 2014

EUR/USD: This is
a bear market in spite of the sideways movement on it and the bulls’ intent. With
an expected increase in the bearish pressure, the price should be able to
breach the support line at 1.3500 to the downside, going further downward. The
EMA 56 is a hurdle to the bulls’ intent.

USD/CHF: This is a bull market in spite of the sideways
movement on it and the bears’ intent. With an expected increase in the bullish
pressure, the price should be able to test the resistance level of 0.9100 to the
upside, going further upwards (this week or next week). The support level at 0.9000
is a hurdle to the bears’ intent.

GBP/USD: On the Cable, further bearish attempt has met
a challenge at the accumulation level of 1.6250, but the price could go back to
test that level again. The market is bearish as long as it is below the
distribution territory at 1.6400. In addition, the fundamental figures coming
out today would have impact on the markets.

USD/JPY: There is
a kind of equilibrium phase in this market, although the overall bias is
bearish. There is a need for the price to challenge and overcome the demand
level at 101.00, so that the bearish outlook in the market can continue to make
sense. Short trades would be preferable.

EUR/JPY: Generally,
this currency cross is trying to recover the little loss it has seen this week.
This attempt has been very limited – for the power of the bulls is limited in
this market. The demand zone at 136.00 is the ultimate target for this week or next
week, but there could be certain pullbacks before the target is reached.

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