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Daily analysis of major pairs for September 5, 2014

EUR/USD: This pair tumbled: just like most other EUR pairs. The sudden loss of strength in the EUR has caused the pair to break one support level after the other. The price is currently trading below the resistance level at 1.2950: it may reach another support level at 1.2900.


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USD/CHF: Since this currency trading instrument is negatively correlated to the EUR/USD pair, it is no wonder that the price has gone further north. Really, our target for this has been exceeded and the price may test the resistance level at 0.9350.


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GBP/USD: Generally, this market has fallen by over 300 pips this week. This is a significant bearish market and the price could reach the accumulation territory at 1.6250. The obvious weakness in the GBP and the significant stamina in the USD would ensure that this bearish run continues.


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USD/JPY: This is a bullish market. The price is above the EMA 56 and the RSI period 14 is above the level 50. The stamina in the USD is a factor in this northward journey and the price may go further upwards to test the supply level at 105.50.


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EUR/JPY: The EUR/JPY pair tumbled as a result of sudden and exponential weakness in the EUR. In fact, all EUR pairs have tumbled, and this trend may continue significantly today. The EUR/JPY pair has tested the demand level at 136.00. The next target may be the demand level at 135.50.


5.pngThe material has been provided by InstaForex Company - www.instaforex.com