Daily analysis of major pairs for October 17, 2016
The EUR/USD went down by 220 pips last week, closing below the resistance line at 1.1000. There is a strong Bearish Confirmation Pattern in the 4-hour chart, which means further bearish movement is expected this week, and that could take price towards the support lines at 1.0950 and 1.0000. However, it is unlikely that the great support line at 1.0000 would be breached.
EUR/USD: The EUR/USD went down by 220 pips last week, closing below the resistance line at 1.1000. There is a strong Bearish Confirmation Pattern in the 4-hour chart, which means further bearish movement is expected this week, and that could take price towards the support lines at 1.0950 and 1.0000. However, it is unlikely that the great support line at 1.0000 would be breached.
USD/CHF: Just as it was predicted last week, this pair trended upwards 125 pips, testing the resistance level at 0.9900. It should be noted that bulls have repeatedly failed to go above the resistance level. However, due to the extant buying pressure in the market, the resistance level might be breached to the upside, and price may not go significantly upwards following that.
GBP/USD: This currency trading instrument remains bearish, both in long-term and short-term outlook. There is a huge Bearish Confirmation Pattern in the market, and any bullish effort should be taken as sell-shorting opportunities. Price is currently consolidating, but a breakout is imminent this week or next.
USD/JPY: There is still a bullish signal in his market, and there is a Bullish Confirmation Pattern in the chart. As long as price is above the demand level at 101.50, the bullish signal would be valid. Bulls might be able to target the supply levels 105.00 and 105.50 this week.
EUR/JPY: It is better to stay away from this market right now, because there is no directional movement (except one is trading on a very low timeframe, going for quick gains). A close look at the market shows the possibility of price going further south this week, due to the weakness of EUR.
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group
Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html
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