19.10.201607:58 Forex Analysis & Reviews: Daily analysis of major pairs for October 19, 2016

EUR/USD: There is a Bearish Confirmation Pattern on the EUR/USD 4-hour chart, and price could continue going further downwards, reaching the support lines at 1.0950 and 1.0900. The further price goes south, the more opposition it encounters from bulls.

USD/CHF: Since last week, this pair has not been able to go above the resistance level at 0.9900. Bulls would continue to lay siege to that resistance level until they finally breach it to the upside, targeting more resistance levels above. Should bulls fail to go above the resistance level at 0.9900, that could lead to a possibility of a large pullback.

GBP/USD: The Cable has gone upwards by 150 pips this week, but this is seen as a bullish effort in the context of a downtrend. There is a need for price to go up by at least, 1000 pips, before there can be any threat to the extant long-term bearish outlook in the market. Until that happens, any rallies seen here would turn out to be opportunities to sell short.

USD/JPY: This currency trading instrument has not gone anywhere significantly this week, but a significant rise in momentum is expected before the end of this week or next, which would take price above the supply levels at 104.50 and 105.00. A breakout to the downside would take price below the supply levels at 103.00 and 102.50.

EUR/JPY: The EUR/JPY cross is consolidating to the downside. The price is under the supply level at 114.50, and it could go further downwards. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. A gradual bearish signal is forming and that could lead to a clear Bearish Confirmation Pattern in the market.