FX.co ★ Daily Trading Forecasts (October 9, 2012)

EURUSD: Since the beginning of this week, this market was presenting a short-term bearish mode, but the bias remains to the upside. The price is above the EMA 11, and the Relative Strength Index (RSI) period 14 is above the level 50. It is expected that the price would go bullish.

USDCHF: There have been bullish attempts on USDCHF since this week began, yet the bias remains to the downside. It should be noticed, nevertheless, that the price is trying to cross the resistance level at 0.9350 to the upside. Should this happen, the price would cross the EMA 56 to the upside and violate the current scenario.

GBPUSD: A short trade is still more preferable on the Cable, because the EMA 11 is still below its EMA 56 counterpart. The Williams’ % Range is in the oversold region – something that could cause some bullish rally before the price continues to fall down. The support level of 1.6000 could be tested today.

EURJPY: Earlier this week, the EURJPY fell on the 4-hour chart, touched the EMA 56 (which acted as support). From that level, the price was going up. The EMA 11 is still above the EMA 56, giving a northward movement possibility.

USDJPY: The USDJPY fell yesterday, although not significantly. This posed some threat to the current bullish scenario. We can see that the price has now come up above the EMA 51, which would enable a long trade once the RSI 14 goes above the level 50.