FX.co ★ Daily Trading Forecasts (October 11, 2012)

EURUSD: We can see on the chart that the RSI 14 is above the level of 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; it is something that has a high probability of being breached.

USDCHF: The RSI on the chart representing this market has gone below the level of 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 we have to wait for more confirmation.

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

USDJPY: USD/JPY is also 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, as it was at the beginning of this week. A break above the level of 78.50 would mean the end of that zone.