FX.co ★ Daily analysis of major pairs for October 21, 2014

EUR/USD: This is essentially a bull market – a market that offers opportunities to buy when things are on sale and in the context of the uptrend. This fact has been reflected in the recent price action in the market. The price may thus end up testing the resistance line at 1.2850, which was breached temporarily last week.

USD/CHF: This is essentially a bear market – a market that offers opportunities to sell when the price rallies and in the context of the downtrend. This fact has been reflected in the recent price action in the market. The price may thus end up testing the support level at 0.9400, which was breached temporarily last week.

GBP/USD:  The Cable has continued its journey upwards in a slow and steady manner. Therefore, the Bullish Confirmation Pattern in the market is now stronger. The distribution territory at 1.6200 may be tested very soon, and should that happen, the next target would be the distribution territory at 1.6250.

USD/JPY: The USD/JPY is making serious effort to go further northward. The current price action in the market has already put the recent bearish outlook in jeopardy. Any movement above the supply level at 108.00 would render the recent bearish outlook completely invalid.

EUR/JPY:  The cross is also making a nice effort to continue going upwards, and this has resulted in a confirmed bullish outlook. There is a demand zone at 136.00, and there is a supply zone at 138.00. With more northward journey, the supply zone at 138.00 may be reached this week.