FX.co ★ Daily analysis of major pairs for October 23, 2017

EUR/USD: This pair moved downwards on Monday and Tuesday, turned higher on Wednesday and Thursday and then came down on Friday. The erratic (zigzag) movement has resulted in a neutral bias, which would be overridden this week as the price goes above the resistance line at 1.1900, or it would go below the support line at 1.1700. The pair needs to breach either of these two boundaries for the current neutral bias to end (and this would require a strong momentum). However, a movement to the downside is more likely this week owing to a strong bearish outlook on EUR pairs.

USD/CHF: The market is bullish in shorter and longer term. Price has gained 110 pips this month, and the resistance level at 0.9850 has been tested (it would be tested again). This week, the resistance levels at 0.9900 and 0.9950 would be aimed. Two factors would make this possible: 1) an expected stamina in USD. 2) an expected fall in the EUR/USD.

GBP/USD: The cable has gone downwards by 170 pips last week, resulting in a Bearish Confirmation Pattern in the 4-hour chart. The shallow rally that happened on October 20 could end up being an opportunity to go short at a slightly higher price, for price would continue moving downwards this week, reaching the accumulation territories at 1.3150, 1.3100 and 1.3050.

USD/JPY: This pair started making bullish efforts at the beginning of last week, and the efforts were successful. Price gained 170 pips, testing the supply level at 113.50 on Friday. The outlook on the market is bullish for this week, owing to the expected stamina in USD and expected weakness in JPY. Thus, the supply levels at 114.00 and 114.50 would be tested. A very strong bullish momentum could even cause another supply level at 115.00 to be reached.

EUR/JPY: This cross consolidated in the first few days of last week, and then started moving northwards around the middle of the week. The pair gained 200 pips, closing above the demand zone at 133.50 on Friday. This week, further bullish movement is expected because the outlook on certain JPY pairs is bullish for the week. The supply zones at 134.00, 134.50 and 135.00 could thus be reached.