FX.co ★ Daily Trading Forecasts (September 4, 2012)

Now let’s see the recent developments within 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 of the price above the SMA could render this scenario as invalid. The nearest resistance is at 0.9550.

GBPUSD: This pair is winding its way upwards, although, with considerable difficulties. The bulls could experience some challenges as the price is near 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 pose a threat to further bullish pressure. The nearest support line is at 98.50.

USDJPY: The price for 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 to be effective, especially in the near-term, it would cause further bearish move.