FX.co ★ Daily analysis of major pairs for October 20, 2014

EUR/USD: The situation on the Greenback was the major determinant of the overall market directions last week. The EUR/USD has finally succeeded in going bullish. This has left a Bullish Confirmation Pattern in the chart, and the price is much more likely to go further upwards towards the resistance line at 1.2900.

USD/CHF: Since the USD has become weak, the outlook on the USD/CHF has been bearish. The price is more likely to test the support level at 0.9350 this week, for this is the weekly target. However, attention should be paid to the high volatility in the market (and in the Forex market generally). The high volatility is usually characterized by large upswings and downswings, and therefore, this should be considered when trading.

GBP/USD:  The Cable is also making genuine bullish attempts, which can render the recent bearish scenario completely invalid. The price is already going up, and the overall bias would turn bullish immediately the price crosses the distribution territory at 1.6200 to the upside.

USD/JPY: This pair closed at 106.89 on Friday, October 17, 2014. The price trended downwards last week, but the bull is now making some effort to push the price upwards. Nevertheless, the dominant bias remains bearish until the supply level at 107.50 is breached to the upside.

EUR/JPY:  This cross is also making some serious effort to go upwards in the context of an overall downtrend. From the demand zone at 134.50, the price has gone upwards; and a movement above the supply zone at 137.00 would mean the end of the bearish outlook.