Daily Technical Forecasts on Forex Markets

Daily Trading Forecasts (September 4, 2012)

Yesterday (September 3) featured the continuations of the currency markets conditions that started last week, and it seems there is no end in sight to this. Today, the markets are expected to go in the directions that have started this week - at least for a considerable amount of time. It is logical to simply go with the flow of the markets.

Now let’s see the recent developments in the markets:

EURUSD: Despite what is happening right now, the bias on this pair remains bullish. The price is currently above the SMA 21 as the Stochastic itself is heading upwards. As long as the price stays above the SMA, the bullish propensity is valid.

USDCHF: Here too, the USDCHF pair is in a downtrend: it is under the SMA 21 as the Stochastic is heading downwards. Only a break in the price above the SMA could render this scenario invalid. The nearest resistance is 0.9550.

GBPUSD: This pair is winding its way upwards - although with considerable difficulties. The bulls could experience some challenges as the price nears the resistance level at 1.5900. The Williams’ % Range is in the overbought region, i.e. above -20. No wonder the price is experiencing some difficulties right now.

EURJPY: This market has been flat so far, although it is consolidating to the upside. The Williams’ % Range is hovering around the overbought territory as the resistance lines at 99.00 poses a threat to further bullish pressure. The nearest support line is 98.50.

USDJPY: The price on this instrument is currently weak, since it is clearly in a downward bias. The EMA 11 has crossed the EMA 56 to the downside as the price attempts to find some bottom. If the resistance zone at 78.50 proves effective, especially in the near-term, it would cause further bearish move.

NB: A note on resistance and support levels. In order to avoid repetition during market analyses, we would like to let our readers understand the resistance and support zones drawn automatically on the charts included in our analyses. A chart is enlarged by clicking on it. Please see those blue lines on the charts. All lines above the price show resistance zones while all lines below the price show support zones. They show potential turning points in the market prices – with relevant prices highlighted. When a resistance zone is broken upwards (say 1.5900 on GBPUSD), it becomes a support zone. If it is broken downwards, it becomes a resistance zone. You may click on a chart to enlarge it so that you can see these lines yourself. For example, there may be resistance zones of 80.50, 90.00, and 90.50 on the USDJPY, while there may be support zones of 1.2000, 1.1950 and 1.1900 on the EURUSD.

Azeez Mustapha

 

Daily Trading Forecasts (September 5, 2012)

There were mixed results in the markets yesterday - with not many directional moves on certain popular pairs and crosses. There is a kind of equilibrium territory found by bulls and bears. This kind of scenario cannot continue indefinitely as serious breakouts are bound to occur soon.

EURUSD: The EURUSD pair was slightly corrected lower yesterday - albeit in a context of a near-term uptrend. The price is now around the resistance level at 1.2550, which should do some job in checking further downward moves.

USDCHF: On this pair, the bearish hegemony still holds, as the price hovers around the level at 0.9950. This is a precarious situation, and the bears still have some strength in them. The level at 0.9550 is yet not a lofty aim (it is an easy target).

GBPUSD: The cable was still able to maintain its northbound tendency; though in a rangebound mode. The great resistance level at 1.5900 was further tested a few times on Tuesday. If this level is breached, the price might rise further, going up.

EURJPY: The EURJPY cross has so far traded sideways between the resistance line at 99.00 and the support line at 98.50. This support lines has done a great job resisting further southward threat. There is a long signal here.

USDJPY: On Tuesday, there were several futile attempts by the bulls to push the price higher, for price failed to reach the supply zone at 78.50. I still expect the price to go south, as the recalcitrant USD might be weakened further.

Azeez Mustapha

 

Daily Trading Forecasts (September 6, 2012)

Against the threats of pullbacks and corrections, the currency markets have managed to maintain its current stance. The scenarios mentioned at the beginning of this week are still valid, and they will be driven by economic figures to be released today.

EURUSD: The massive pullback that happened on Wednesday was checked by a consequent resumption in the price rally. The price is currently trading above the support level at 1.2600, and it is expected to go up. .

USDCHF: This pair shows almost the opposite of what happened to its EURUSD counterpart. It is expected that the price would break the support level at 0.9550 before the bearish ride can resume.

GBPUSD: Early on Wednesday, there was a significant rally on the Cable before a minor retracement that we currently observe. The level around 1.5900 now serves as a determinant factor. If the price manages to stay above it, buyers would continue to win.

EURJPY: This cross rose significantly yesterday, and later consolidates higher. The next easy target could be the level at 99.00. The price could continue going up if this level is breached.

USDJPY: This pair still reflects the ongoing tussle between bears and bulls. Only a break above the level at 78.50 would render the current bearish possibility invalid.

By Azeez Mustapha