FX.co ★ Daily analysis of major pairs for October 2, 2014

EUR/USD:  This currency trading instrument is weak (the instrument has been weak for a few months in a row). The support line at 1.2600 has already been breached but the price has failed to close below it. With the continuation of the weakness in the market, the price can eventually close below the support line, moving further downwards.

USD/CHF: This market has been strong – remaining strong in opposition to what the EUR/USD is doing. The target at the resistance level at 0.9600 is still valid and the market is very close to it. That resistance level is strong indeed, and the breach of the level would signify another important achievement for the bullish USD/CHF.

GBP/USD:  This is also a bear market – the price is dropping in a slow and steady manner, targeting the accumulation territory at 1.6150. Should the price succeed in breaking the accumulation territory to the downside, it would easily target another accumulation territory at 1.6100.

USD/JPY:  This bull market has been able to test the supply level at 110.00, after which the price pulled backwards, testing the demand level at 109.00. A movement below the EMA 56 could be the end of the bearish bias. The RSI period 14 has already crossed the level 50 to the upside.

EUR/JPY:  The Bearish Confirmation Pattern on the EUR/JY cross is getting significant. One reason for this is that the JPY is now getting strong. It would be easier for the price to test the demand zone at 137.00. Some fundamental figures are expected today, and they would have impact on the markets.