FX.co ★ Daily analysis of major pairs for October 7, 2015

EUR/USD: The pair is currently performing a bullish breakout on the chart, leading to a bullish bias. However, the bullish bias is not yet completely safe because the resistance line at 1.1300 is calling for a breakout to the upside. Considering both the direction of a price action and indicators in the chart, the market seems poised to achieve this important feat.

USD/CHF: There was a large bearish movement yesterday, giving the way for a brand-new bearish outlook. The EMA 11 is now below the EMA 56 (while the price is below the two EMAs) and the Williams % Range period 20 is at the oversold territory. There is a Bearish Confirmation Pattern in the market and further movement to the south could be witnessed.

GBP/USD: This market started a determined bullish movement yesterday although the market has not moved upwards so much. The medium-term bias is bearish, and this could be rendered useless only when the price goes above the distribution territory at 1.5300. Until that happens, long positions should be opened with caution.

USD/JPY: Owing to the ongoing struggle between bulls and bears, this currency trading instrument has become quite choppy because there is not yet a strong directional movement. This week, the price would either break the supply level at 121.00 to the upside or break demand level at 118.00 to the downside. This condition must be fulfilled before it can be said that the consolidation phase in the market is over.

EUR/JPY: There is now a 'buy' signal on the chart. The price, which tested the level of 135.50, retested it. It even broke the level to the upside. Based on the current price action, this could be the beginning of a considerable bullish journey, which could last for the rest of this week.