FX.co ★ Daily analysis of major pairs for October 21, 2016

EUR/USD: After a volatile Thursday, this pair was able to trend further southwards. There is a Bearish Confirmation Pattern in the market, which would bring price towards the support lines at 1.0900 and 1.0850. However, this would not be without some noticeable opposition from bears.

USD/CHF: After a long siege, the USD/CHDF pair was able to go above the resistance level at 0.9900. The next target could be another resistance level at 0.9950. There is a bullish signal in the market, and bulls would be able to prevent any major pullback today.

GBP/USD: Right now, the Cable is consolidating. There is a need for price to go up by at least, 1000 pips, before there can be any threat to the extant long-term bearish outlook in the market. Until that happens, any rallies seen here would turn out to be opportunities to sell short.

USD/JPY: It looks like the USD/JPY pair has entered an equilibrium phase, but a closer look reveals that a bullish signal is gradually forming in the market. Price is above the EMA 11, which is in turn, above the EMA 56. The RSI period 14 is above the level 50, which means price could be moving towards the supply level at 104.50 today.

EUR/JPY: The EUR/JPY pair has gone bearish, just as it was anticipated. There is a Bearish Confirmation Pattern in the market, and price could be trending further downwards – just in opposite to what the USD/JPY pair is doing. One reason for the perceived weakness in the market is because of the weakness in EUR itself.