05.10.201611:40 Forex Analysis & Reviews: Daily analysis of major pairs for October 5, 2016

Long-term review

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EUR/USD: The EUR/USD pair is volatile and directionless, having tested the support line at 1.1150 and the resistance line at 1.1250 (last week). Price needs to go above the resistance line or below the support line, to form a bearish or bullish bias. This is what is expected before the end of the week.

USD/CHF: This pair shot upwards and rammed into the resistance level at 0.9800, after which there was some bearish correction. The EMA 11 is above the EMA 56, and the Williams' % Range period 20 is around the overbought region, which shows that bulls are very active in the market. Further bullish movement is expected, though bulls would experience a stubborn challenge at the resistance level of 0.9900.

GBP/USD: The Cable has gone upwards by 220 pips this week. Price trended downwards on Monday and Tuesday and the pair is poised to go further downwards, targeting the accumulation territories at 1.2700 and 1.2650, which might be breached today or tomorrow.

USD/JPY: The USD/JPY pair has trended upwards by 160 pips this week, which has resulted in a nice bullish bias. The EMA 11 is above the EMA 56 and the RSI period 14 has gone above the level 50. The next target for bulls are located at the supply levels of 103.00, 103.50, and 104.00. Immediate demand levels would resist any bearish attempts on the way.

EUR/JPY: This cross pair rallied seriously on Tuesday, following a bullish signal that was noticed on Monday. There is now a clean Bullish Confirmation Pattern on the chart, which signals more northwards movement. Bulls would soon target the supply zones at 115.50 and 116.00 today or tomorrow.

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