Daily analysis of major pairs for October 19, 2015

The Cable moved upwards last week, testing the distribution territory at 1.5500 a few times. The price was unable to break above the distribution territory – something that needs to be achieved this week so that the uptrend could continue. The uptrend would be rational as long as the accumulation territory at 1.5200 is not broken to the downside.

EUR/USD: There is a bullish outlook on the pair, though it was corrected lower by the end of the last trading week. The bearish correction could end up being a wonderful opportunity to go long this week (unless the demand level at 1.1250 is broken to the downside). The resistance lines at 1.1450 and 1.1500 could be reached this week.

USD/CHF: There is a Bearish Confirmation Pattern on the USD/CHF; plus the pair would remain under selling pressure as long as the EUR/USD is in a bullish mode. So it is logical to conclude that the movement on the USD/CHF would be largely determined by whatever happens to the EUR/USD.

GBP/USD: The Cable moved upwards last week, testing the distribution territory at 1.5500 a few times. The price was unable to break above the distribution territory – something that needs to be achieved this week so that the uptrend could continue. The uptrend would be rational as long as the accumulation territory at 1.5200 is not broken to the downside. This means that any noticed pullbacks in the market could be taken as opportunities to go long.

USD/JPY: This currency trading instrument has moved back into the neutral territory, owing to the upward bounce that we see after the bearish plunge that happened last week. The price fell by 200 pips and later rose by 150 pips. For a neutral bias to vanish, the price must either go above the supply level at 121.00 or go below the demand level at 118.00.

EUR/JPY: This cross, which traded sideways from Monday till Wednesday last week, broke towards the south on Thursday. The southwards break was strong, but it was not strong enough to jeopardize the existing bullish outlook. A movement below the demand zone at 134.50 would result in a bearish outlook (though it is expected that the demand zone would defend the extant bullish outlook). Any movement above the supply zone at 136.00 would reinforce the existing bullish outlook, which might mean that the pullback which happened on Thursday was a nice opportunity to go long.

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