Daily analysis of major pairs for January 21, 2014

EUR/USD: As indicated by the Bearish Confirmation

Pattern in the chart, the pair is weak and would continue to trend lower. The

weakness of the EUR/USD is expected to continue irrespective of any short-term

rallies in the market. The price would soon test the support line at 1.3500.

USD/CHF: As indicated by the Bullish Confirmation

Pattern in the chart, this pair is strong and would continue to trend upwards.

The strength of the USD/CHF is expected to continue irrespective of any

short-term bearish corrections in the market. The price would soon test the

resistance level at 0.9150.

GBP/USD: Surprisingly (though it is not new), this market

has assumed a bullish bias and it may start putting more effort to go further

northward – as engineered by the bulls. It is possible that the weakness of the

EUR/USD might indirectly cause a limited bullish movement in the market, but

the price could reach the distribution territory at 1.6500.

USD/JPY: The

vagary of the USD/JPY is gradually becoming a major source of concern. Recent bullish

and bearish signals have proven to be short-lived and unreliable. A movement would

happen suddenly and not when expected; and when a new bias is confirmed, a

reversal would soon occur. At the present, a bullish signal is in place and it

seems logical for one to take a profit at 105.00.

EUR/JPY: This

cross has been able to maintain it bearish bias, and rallies have always been opportunities

to sell short here. There is a barrier the bullish attempts at 142.00. Meanwhile

the price could fall further before reaching there.

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

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