Technical Forecasts In Currency Markets

Daily Trading Forecasts (September 7, 2012)

True to what has been analyzed, most currency instruments were expected to continue in the direction of the new overall trend, except in a few circumstances. After some protracted consolidations, those pairs and crosses have broken out in the expected directions.

EURUSD: This has been a bullish week for this pair. It has continued to move up above the EMA 21 as the Stochastic heads towards the overbought level. The resistance level at 1.2705 has already been tested and price could continue higher if it closes above that level.

USDCHF: Contrary to what would be normally expected as a negative correlation movement, this market has continued to be rangebound, rather than give a clear direction. One will do well to stay out of it for now.

GBPUSD: In spite of bearish corrections and pulls, the Cable has continued to go up. It has moved up by over 100 pips this week. The price is also above the EMA 21 as the Williams’ % Range is around the overbought level.

EURJPY: Based on what has been said, the bullish breakout that has started in the present context of an uptrend is expected to continue. Albeit there could be some correction to the downside before the upward journey is resumed.

 

Daily Trading Forecasts (September 10, 2012)

Last week, the events on the markets were not favorable to the Greenback. The Greenback was weakened against most other currencies while they gained strength against it.

EURUSD: The EURUSD ended up rising by over 250 pips last week. The price is now above the level at 1.2800 and is expected to continue.

USDCHF: After some decisive battle between bulls and bears, this pair fell by over 110 pips last week. The price is expected to reach the level at 0.9350 this week.

GBPUSD: The Cable rose by over 160 pips last week, closing at 1.6008. A price level at 1.6100 is expected to be reached this week.

EURJPY: The EURJPY went up by over 180 pips last week, as it closed at 100.28. This week, if the present outlook continues to be valid, the price may reach the level at 101.00

USDJPY: Based on the market fundamentals, this pair, which traded in some tight range, rose and fell last week. It touched the resistance level at 79.00, fell by almost 100 pips and nearly reached the support level at 78.00. In correlation with other JPY pairs, the USDJPY is expected to rise this week.

 

Daily Trading Forecasts (September 11, 2012)

Today, the currency markets are hovering around major supply and demand zones, as buyers and sellers continue their normal activities. Most pairs and crosses have tended to continue in the directions they saw earlier this week

EURUSD: This pair has been experiencing some difficulty in trending more upwards. The price is still above the EMA 21 as the Stochastic is trying to head upwards: which means that the price can break out to the upside.

USDCHF: As the USDCHF range-trades, it also finds it not easy to plunge further downwards. The price is below the EMA 21 as the Stochastic is also trying to head up. The price would possibly continue to go lower.

GBPUSD: This market has continued to showcase its northward bias as the price remains far above the EMA 21. The Williams’ % Range is in the overbought region; which may cause some pullback before the price continues its northward journey.

EURJPY: Since the EMA 11 still stays above the EMA 56, it is possible for the price to continue going up. In spite of the present pullback in the price, the Williams’ % Range in the oversold territory may allow bulls to enter at a cheaper price.

USDJPY: This pair has continued its weakness as the price has broken down, testing the support level at 78.00. The EMA 11 is below the EMA 56, showing a downward bias. The next target in the price may be 77.50.

 

my head is starting to hurt.................

 

Daily Trading Forecasts (September 12, 2012)

Yesterday saw determined continuations in the current market biases. These biases are expected to continue further today, as buying and selling pressures hold out in their respective directions. This still holds true, though prices do not travel in straight lines.

EURUSD: This is a bull market. The price is still far above the EMA 21, though the Stochastic is now in the overbought territory. The next price target would be 1.2950.

USDCHF: When the EURUSD goes up, it will be difficult for USDCHF to do the same; hence the current downtrend. The support level at 0.9350 has been tested, and the price could breach it if the current market bias continues further.

GBPUSD: This is also an uptrend. The Cable has continued its slow and steady journey to the upside. The resistance level at 1.6000 has already been breached, while the price targets the resistance at 1.6150

EURJPY: Looking at the chart that accompanies this analysis on the EURJPY, we would see that everything points northwards. The resistance level at 100.50 has been disrespected as the price sticks its neck further.

USDJPY: Unlike most other JPY pairs, the USDJPY has continued to show vivid lack of strength. The support level at 77.50 is struggling to halt further downward trend. If it holds its ground, the price would rise.

 

Daily Trading Forecasts (September 13, 2012)

The present currency markets biases are still valid, though some instruments are showing signs of retracement. When the markets break out of the current equilibrium zones, pairs and crosses are expected to continue in their directions.

EURUSD: The price is presently above the support level at 1.2900. The next resistance level is 1.2950, and if this is broken, the price would target 1.3000.

USDCHF: In this market, further bearish move was rejected at the accumulation territory situated at 0.9350. The price is trying to rally temporarily to the resistance level at 0.9400, but this could be what it is called - temporary.

GBPUSD: The price on this market has already been caught in an equilibrium zone as the Cable tests the support level at 1.6100. If the support level proves valid, the price would test the resistance level at 1.6150.

EURJPY: The resistance level at 100.50 has been futilely tested by the price, as the Williams’ % Range is heading down from the oversold region. The psychological support level at 100.00 would allow the bulls to enter long at that level.

USDJPY: This is a bear market: the price is now threatening to go below 77.50. If this bearish propensity continues, the next target would be a demand zone at 77.00.

 

Daily Trading Forecasts (September 14, 2012)

This week has been bullish for some instruments like the EURUSD, GBPUSD, EURJPY, and so on. Whereas it has been bearish for an instrument like the USDCHF. This would have been fortunate for trend riders as the markets break through resistance and support levels.

EURUSD: This bullish market has even gone beyond our target for this week. The price remains far above the EMA 21 as the Stochastic is now in the overbought territory. The bias remains bullish.

USDCHF: The USDCHF is bearish, as the price remains below the EMA 21. The Stochastic is now in the oversold territory; the bias still points downwards.

GBPUSD: Now the Williams’ % Range has constantly been in the overbought territory as the price remains upward. It still stays above the EMA 21, being bullish.

EURJPY: This clearly shows that the Euro is indeed strong. The JPY has constantly been weakened against it as the Williams’ % Range also goes perpetually overbought. The EMA 11 is still above the EMA 56, confirming the trend.

USDJPY: As expected earlier this week, the USDJPY eventually attempts to go north in spite of the recent USD weakness against the JPY. This new bullish attempt would be confirmed once the EMA 11 crossed its EMA 56 counterpart to the upside.

 

Daily Trading Forecasts (September 17, 2012)

There were significant directional movements in the markets last week. Even some currency markets instruments that moved anti-cyclically were forced to correlate with the overall trends. These biases are expected to continue this week - however, not without retracements.

EURUSD: In this bull market, the EURUSD rose by over 350 pips last month. This is expected to continue this week, though not without some pullbacks.

USDCHF: This is a bear market, and the pair fell by more than 200 pips last week. This is also expected to continue as the price might reach the support level at 0.9200.

GBPUSD: Last week, the GBPUSD rose by roughly 250 pips. This is a bull market, and it ought to continue moving upwards except some fundamentals change some things.

EURJPY: Despite some precarious bearish threats, the EURJPY rose by about 300 pips last week. The resistance level at 103.00 has already been tested, and the price will go further if that level is broken this week.

USDJPY: As it was said earlier last week, this pair, which was formerly weak, was ultimately forced to correlate positively with other JPY pairs. The change in the trend would be confirmed this week when the EMA 11 crosses the EMA 56 to the upside.

 

Daily Trading Forecasts (September 18, 2012)

Apart from a few instances, the currency markets largely range-traded yesterday. Although the current biases in the markets are still valid, this does not mean that there cannot be corrections.

EURUSD: The EURUSD traded sideways yesterday. The price is still above the EMA 21 and a new long order might be generated when the Stochastic Oscillator reaches the oversold territory. .

USDCHF: This pair was also caught in a sideways movement, and the price is still below the EMA 21. A renewed ‘sell’ signal would be valid once the Stochastic Oscillator gets to the overbought territory.

GBPUSD: The Cable went moderately upward on Monday, and can continue doing so despite some imminent pullbacks, for the Williams’ % Range is in the overbought region. The price is still above the EMA 21.

EURJPY: The EURJPY went moderately upward on Monday. A pullback would not be a surprise because the Williams’ % Range is in the overbought territory, though the price still stays above the 2 EMAs.

USDJPY: In this market, a long trade is now valid. The EMA 11 has already crossed the EMA 56 to the upside; therefore confirming the change to a bullish bias.

 

Daily Trading Forecasts (September 19, 2012)

The markets are now at interesting zones as major biases tend to thin out. In the current consolidation phases, pairs and crosses would either continue their respective biases or reverse those biases.

EURUSD: The EURUDSD is now experiencing some correction, as the price goes below the EMA 21 and the Stochastic falls into the oversold region. The next support target could be 1.2950.

USDCHF: The consolidation on this pair is taking it gradually to the upside as the price threatens to cross the EMA 21 to the upside. The next resistance level in this upside correction could be 0.9350.

GBPUSD: Here too, the Cable is experiencing a vivid pullback, as the Williams’ % Range points to the oversold level and the price attempts to cross the EMA 21 to the downside. The next support level could be 1.6150.

EURJPY: This cross is currently volatile as the bulls and bears struggle against each other. The Williams’ % Range is almost in the oversold region, yet the bullish bias remains valid.

USDJPY: A valid long signal has already been generated on the USDJPY, though it is also subject to the present equilibrium propensity. If the price can break the resistance level at 79.00, the next target would be 79.50.