FX.co ★ Daily Trading Forecasts (October 8, 2012)

The NFP came out with much better than expected figure on Friday, October 6, 2012. This caused mixed reactions in the markets, but in general, it enhanced bull markets. This development may determine what would happen this week.

EURUSD: EURUSD had a clear bullish movement last week. It is currently trading above 1.3000 level. The momentum yet remains to the upside, and as the result, the price may reach the resistance line at 1.3100 this week.

USDCHF: This pair, which usually has opposite effect as compared to EURSD, had a clear bearish move last week. Currently, the price is trading below the resistance line at 0.9300. The price may touch the support line at 0.9200 this week.

GBPUSD: The fundamental fact that has a bullish effect on EURUSD had a bearish effect on GBPUSD. This pair headed down on Friday, the next potential target is being placed at1.6100. If the price reaches this level, it may lead to a bear market.

EURJPY: This fast moving cross went up by almost 300 pips last week, and it could reach the resistance level at 103.00 this week. The price is trading at 102.50. The bullish momentum is still here.

USDJPY: There is a clear ‘buy’ signal on this pair. It is now vivid that the yen is very weak right now. If this bullish wave continues to go up, the pair may reach the resistance level at 79.00 this week. Otherwise, it would fall down, reaching at least the demand territory at 78.50.