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16.05.2014 10:33 AM
Daily analysis of major pairs for May 16, 2014

EUR/USD: The EUR/USD had hit the support line at 1.3650 before it rallied a little. The little rally has taken the price above the resistance line at 1.3700, but it should be halted at the resistance line at 1.3750. It is possible for the price to go downwards again and test the support line at 1.3650. When this happens, the support line might be breached to the downside as the price goes towards another support line at 0.3600.

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USD/CHF: USD/CHF had topped the resistance level of 0.8950 before it pulled back. The pullback was halted at the support level of 0.8900. It is possible for the price to go upwards again and test the resistance level at 0.8950. When this happens, the resistance level might be breached to the upside as the price goes towards another resistance level at 0.9000.

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GBP/USD: The downtrend on the Cable has been halted at the accumulation territory of 1.6750, but the ensuing upward bounce was also halted at the distribution territory of 1.6800. The price is expected to go further downwards in the context of a downtrend, testing the accumulation territory of 1.6750 again and probably breaking it downwards.

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USD/JPY: This is a bear market, though the perceived strength in USD has prevented the pair from going down significantly like other JPY pairs. The price should go southwards more, thus breaking the stubborn demand level at 101.50 to the downside.

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EUR/JPY: This crossed dropped seriously and tested the demand zone at 139.00. The price is still at the demand zone and could go further downwards. The indicators in the chart confirm the established southward bias.

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