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.

Super Trading Strategies: http://www.advfnbooks.com/books/supertradingstrategies/index.html

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Lending Works

• 

  Tor FX

• 

  Luca Rossi

• 

  Luis Aureliano