24.10.201607:32 Forex Analysis & Reviews: Daily analysis of major pairs for October 24, 2016

EUR/USD: The EUR/USD pair was able to go downwards by more than 100 pips last week. Since October 10, 2016 price has gone down by over 300 pips. The outlook on the market, as well as other EUR pairs, is bearish for this week. Therefore, we may witness a slow and steady bearish movement that would take price towards the support lines at 1.0850 and 1.0800 this week.

USD/CHF: From October 12 to October 20, bulls made a decisive move to the resistance level at 0.9900. After much persistent bullish pressure, bears gave way as price went upwards, testing the resistance level at 0.9950, and the retracing bit. Because USD is strong and because CHF is expected to drop further this week (allowing other major pairs to go upwards against it). There may be some bullish movement that would push USD/CHF above the resistance level at 0.9950 this week.

GBP/USD: This currency trading instrument went upwards from Monday till Wednesday, and then consolidated till the end of the week. This is best called a kind of consolidation in the context of a downtrend. The outlook on GBP pairs is bullish for this week, but the bullish movement on GBP/USD might not be significant enough to threaten the ongoing major bullish bias.

USD/JPY: This market moved sideways throughout last week, but the bullish bias in it is still visible. This week, momentum would rise as price resumes its recent bullish journey, targeting the supply levels at 104.50 and 105.00. The outlook on other JPY pairs is bullish for this week, and USD/JPY is no exception.

EUR/JPY: One major reason why this cross dropped by 170 pips last week was because EUR is weak. Further weakness in EUR would cause more southward journey, for there is a clean Bearish Confirmation Pattern in the market. However, we may witness some rally in case the Yen becomes weaker than the EUR this week.