FX.co ★ Daily analysis of major pairs for October 26, 2016

EUR/USD: This market has moved sideways so far – in the context of a downtrend. Further downwards movement is expected, for price could reach the support lines at 1.0850 and 1.0800. The support line at 1.0850 was reached and would be reached again. EUR pairs would be going down this week; so the EUR/USD would be no exception.

USD/CHF: The USD/CHF went briefly above the support level at 0.9950, but bears came into force price back below that level. The bias remains bullish and it is expected that price would continue trudging upwards, but not significantly. An important resistance level is at 1.0000.

GBP/USD: The bias on the 4-hour and daily charts is bearish (that is the dominant bias), though the market has been in the equilibrium phase since last week. This means that a breakout is imminent, which is supposed to favor bulls. But the bullish movement would not be significant enough to override the dominant bullish bias.

USD/JPY: The bullish signal on the USD/JPY remains valid, owing to the Bullish Confirmation Pattern in the market. Bulls are still willing to push price further northwards, and so, the supply levels at 105.00 and 105.50 might be tested today or tomorrow.

EUR/JPY: What is happening on this cross is best termed a bullish attempt in the context of a downtrend. The bullish attempt was not significant enough to threaten the current bearish bias. The EMA 11 is below the EMA 56, and the RSI period 14 is below the level 50. It is possible that price would come down again, especially when EUR exhibits more weakness.