FX.co ★ Daily analysis of major pairs for October 27, 2016

EUR/USD: This market has moved sideways so far – in the context of a downtrend. Further downwards movement is expected as the price could reach the support lines at 1.0850 and 1.0800. The support line at 1.0850 was reached and can be reached again. Rallies here should be taken as opportunities to sell further.

USD/CHF: There is still a Bullish Confirmation Pattern on the USD/CHF. The EMA 11 is above the EMA 56, and the Williams' % Range period 20, being in the oversold territory, means that price could trend higher. This means that the Williams' % Range period 20 could be seen moving higher in tandem with ongoing bias.

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. That could happen this week or next.

USD/JPY: This pair has managed to climb slightly above the demand level at 104.50. Bulls should be able to target the supply levels at 105.00 and 105.50, especially in order to avoid possible pullbacks in the market, which could threaten the current bullish outlook. Some fundamental figures are expected to be released today and they could have impact on the market.

EUR/JPY: From the beginning of this trading week till now the price has been making attempts to go higher, and this has started posing threat to the recent short-term bearish trend. A movement above the supply zone at 115.00 can result in new bullish signal; while a movement below the demand zone at 113.00 can emphasize the recent bearish trend.