Technical Forecasts In Currency Markets

Let me guess, whatever EUR/USD is going to do, USD/CHF will do the opposite?

Let me know when that changes

 

Daily Trading Forecasts (October 10, 2012)

There are now changes in the markets, because bears have started to show more determination. There are interesting developments as charts reveal.

EURUSD: The price has been going down, giving short sellers good trading opportunities. The support level at 1.2850 is being tested, and if it is broken to the downside, the next target could be 1.2800. The RSI 14 period is below the level 50.

USDCHF: It looks like the USDCHF has bottomed out. This gives buyers good opportunities to enter at great price levels. The price is above the level at 0.9400, heading for the resistance level at 0.9450. The RSI 14 period is above the level 50.

GBPUSD: Bears rule on the Cable: it has dropped by close to 150 pips this week. There is currently a great struggle between buyers and sellers at the 1.6000 accumulation zone. The price is trying to rally in the near-term, but this may give bears another chance to enter at a better price.

EURJPY: This cross has come down by more than 180 pips this week. This new bias has been confirmed as the EMA 11 crossed the EMA 56 to the downside. If the price level at 100.70 is broken to the downside, the next target would be 100.00.

USDJPY: This is a difficult market. After a drop in the price that happened earlier this week, the price has continued to move sideways, especially starting from Tuesday. It is advisable to stay out of this market until a clearer signal is generated.

 

Daily Trading Forecasts (October 11, 2012)

Bullish breakouts are currently happening in the markets, and resistance levels are about to be breached to the upside, especially if this scenario continues. These are clear reversals in what we saw at the beginning of this week.

EURUSD: We can see on the chart that the RSI 14 is above the level 50. If this bullish breakout continues, the price might breach the EMA 56 to the upside. The next price target is the resistance level at 1.3000 – something that has a high probability of being breached.

USDCHF: The RSI on the chart representing this market has gone below the level 50, as the price itself is making an attempt to cross the EMA 56 to the downside. The eventual confirmation of this event is being waited for. The next support level that could be breached is 0.9300.

GBPUSD: After a fall of nearly 150 pips, the Cable eventually bottoms out and turns towards the north. The level at 1.6000 has proven to be a strong accumulation level. The Williams’ % Range is now rising from the oversold region, but one would need to wait for more confirmation.

EURJPY: There is a significant bullish breakout on this cross: It has moved by roughly 120 pips today. It is still presumptuous to assume a long trade here, however. This can be a chance to short in a new downtrend, or to buy.

USDJPY: The USDJPY also is going in the direction of other JPY pairs; there is a significant bullish rally right now. This signifies the weakness of the Yen, though the pair is still within the equilibrium zone that it saw at the beginning of this week. A break above the level at 78.50 would mean the end of that zone.

 

Daily Trading Forecasts (October 12, 2012)

The markets are now at critical, but interesting levels. Actually, there is a continuation of the momentum that has started since Thursday, but it might seem judicious to wait for more confirmation in a few cases, before taking certain positions.

EURUSD: The bearish plunge that started this week has reversed largely. If the price goes back to the level at 1.3000, a bullish bias is then confirmed. A long position is being braced for on the EURUSD.

USDCHF: The attempted rally that begun at the beginning of this week has been reversed as well. The RSI is now below the level 50. A brand-new bearish wave is currently forming, and if this thing continues, the next support level would be 0.9300.

GBPUSD: The overall bias is still bearish on this pair, though the price is currently in some sort of rally. This is further confirmed by the Williams’ % Range that is going into the overbought level. If there is no confirmation of the bullish bias, one would need to sell dearer.

EURJPY: This cross is still bullish – showing the overall weakness in the Yen. From a low of 100.14, the cross has moved up by more than 170 pips. One thing that could be done is to buy a bearish retracement, say around the demand zone at 101.50.

USDJPY: The USDJPY has largely ranged-traded this week. Should I need to make a decision, however, I would prefer to go long. This is because the pair is currently above the EMA 21, while the RSI 14 is above the level 50.

 

let me guess, whatever EUR/USD does, USD/CHF is going to do the opposite?

I've also noticed that when bonds go down, rates tend to go up

 

Daily Trading Forecasts (October 15, 2012)

There were mixed results in the markets last week, but this week could proffer some directional opportunities. Clear signals are coming out of the markets as fundamental events and price actions unfold.

EURUSD: Last week, the EURUSD fell and rose. It bottomed at 1.2826, and has begun to rise since then. A new long signal is being generated; something that may be taken as more confirmation is gotten.

USDCHF: The USDCHF rose and fell last week, topping at 0.9430. A bearish signal is now being generated, and could be taken if the price falls further today. This is the confirmation that is being awaited.

GBPUSD: This pair has been trying to rise from its accumulation zones since last week. The Williams’ % Range is already in the overbought region, and this may lead to some pullback in the price. The overall bias remains bearish, but one would need to wait for more confirmation before taking a position.

EURJPY: There is a high probability of a northward journey in the market. If the price goes further north today, it may lead to a bullish confirmation. The supply zone at 102.00 could be breached easily.

USDJPY: This market consolidated further before closing last week. If there is any recommended position, it would be long. The RSI is above the level 50 while the price itself stays above the EMA 56.

 

Daily Trading Forecasts (October 16, 2012)

As expected, there have been significant movements in the markets. Basically, currency pairs and crosses continue the directions they have assumed since the start of this week. These movements could continue for the rest of today.

EURUSD: The ‘buy’ signal that has been formed on the EURUSD since the beginning of this week is still valid. The price is above the EMAs 11 and 56, while the RSI 14 period is above the level 50. The next target would be 1.3100.

USDCHF: There has been a bearish bias confirmation on this pair – a scenario that is expected to be carried on. The price is now far below both the EMA 11 and 56, as the RSI 14 is still below the level at 50. The next price target is could be 0.9250.

GBPUSD: I still prefer to stay out of this market as I await new bullish confirmation. If the present scenario continues, a long possibility would eventually be confirmed. The Williams’ % Range is already in the oversold region.

EURJPY: The EURJPY started its bullish signals before the end of the last week. Now the signal is more than confirmed, as the price has gone up by roughly 170 pips in this week alone. The price is far above the EMA 11 and 56, and the next target to be breached is 103.00 – approximately to the upside.

USDJPY: What is happening on this pair is reflective of the situation on the other JPY pairs. The market is travelling northward, being above the EMA 56. As the RSI 14 is above the level 50: the next price target is 79.00.

 

Daily Trading Forecasts (October 17, 2012)

Interesting developments have already taken place in the markets. It is more probable that the currency instruments would continue in the directions they have assumed this week. If there would be reversals, they are expected to be temporary.

EURUSD: On this bullish pair, any bearish correction could take the price to the support level at 1.3000. This is however, expected to be temporary. A continuation of the price towards the north would take it to the resistance level at 1.3100.

USDCHF: The bearish USDCHF would continue to go down for the time being, reaching 0.9250 and going beyond. A bullish correction could take the price temporarily back to the resistance level at 0.9300. After this, the overall plunge should continue.

GBPUSD: A long trade would now make a lot of sense on the Cable. It is possible that the price would reach the distribution zones at 1.6150 and 1.6200, though a retracement towards the accumulation zones at 1.6000 is also a possibility.

USDJPY: The price target on this instrument remains 79.00. After this is broken today or tomorrow, the price would struggle to reach the supply territory at 79.50. But one should not overlook the demand zone at 78.50.

EURJPY: The bullish breakout on the EURJPY is now fast and furious. The supply zone at 103.00 has been besieged, and would be broken to the upside; should the current propensity continue. There is a near-term demand zone at 102.50.

 

Daily Trading Forecasts (October 18, 2012)

The markets continued in their directions yesterday, though there were reversals in some cases. Even in the markets that went according to predominant biases, there were consolidations and indecisions. Today will see some continuations.

EURUSD: The EURUSD went beyond the forecasted target of 1.3000 yesterday. The price is currently above that level, and would reach the resistance area at 1.3150, if the bullish pressure continues today.

USDCHF: This pair is still in a bearish mode, and if this mode continues, the support level at might be breached today 0.9200. However, there is also a possibility of a retracement back to 0.9250 – something that is expected to be temporary.

GBPUSD: This is yet a bull market. The Cable now experiences some difficulty around the price zone at 1.6150, but could also reach the distributing zone at 1.6200. The recommended trade here is a long trade.

USDJPY: As expected, the USDJPY reached the target of 79.00 and broke it to the upside. The pressure is still bullish, as the price continues to show more determination towards the next. It is possible that the target at 79.50 be reached today or tomorrow.

EURJPY: So far this week, the EURJPY has moved up by more than 240 pips. The price is currently above the price level at 103.50: trying to reach for the supply zone at 104.00. This would be the ultimate target for this week.

 

Daily Trading Forecasts (October 19, 2012)

In spite of the massive corrections that are taking place in the markets right now, this week has been a great one as far as the currency markets are concerned. The present corrections merely proffer unique opportunities to speculate at better prices.

EURUSD: From a high of 1.3138, the EURUSD has corrected lower by around 80 pips. The bullish bias is still valid, because the price is still above the EMA 56 and the RSI 14 has not crossed the level 50 to the downside.

USDCHF: The USDCHF found a bottom at 0.9215, and has been in a slow and steady rally since then. The trend fundamentally remains bearish; since the price is still below the EMA 56 and the RSI 14 is below the level 50, though pointing up.

GBPUSD: The Cable reached a high of 1.6179, before plunging. This happened by more than 130 pips – something that has become a threat to any bullish possibility, especially the recent bullish signal. A continuation of this correction may lead to a ‘sell’ signal.

USDJPY: The correction that is happening on this market is clearly understandable, since the price will not move in a straight line. The RSI 14 reached the overbought region, and is retracing downwards. The ‘buy’ signals remain valid.

EURJPY: Here too, the correction is not that significant, as the price is not expected to fall below the demand zone at 103.00. The Williams’ % Range period 20 reached an overbought region, and would understandably retrace. I still prefer a long trade.