FX.co ★ Daily analysis of major pairs for October 31, 2017

EUR/USD: What has recently happened on the EUR/USD is what can best be described as a rally in the context of a downtrend. Further rally may take price towards the resistance line at 1.1700, which would be tested before price goes downwards. Otherwise, a breach of the resistance line at 1.1750 would result in a new bullish bias.

USD/CHF: What has recently happened on the USD/CHF is what can best be described as a pullback in the context of a uptrend. Further pullback may take price towards the support level at 0.9900, which would be tested before price goes upwards. Otherwise, a breach of the support level at 0.9850 would result in a new bearish bias.

GBP/USD: This pair is still caught in a broad equilibrium phase. Soon, there would be a rise in volatility, which would propel the price above the distribution territory at 1.3300 or below the accumulation territory at 1.3000. GBP pairs would undergo very strong movements in November, which would be bullish in most cases.

USD/JPY: This currency trading instrument came downwards on October 30 – something that has become a threat to the recent bullish outlook on the market. Unless price goes upwards from here (which would save the bullish outlook), things would go bearish once the demand level at 112.50 is breached to the downside.

EUR/JPY: The EUR/JPY pair traded lower on Monday, reaching the demand zone at 131.50. There is a Bearish Confirmation Pattern in the 4-hour chart, which means that price is expected to go further downwards this week, reaching the demand zones at 131.00 and 130.50.