FX.co ★ Daily Trading Forecasts (October 12, 2012)

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 confirmed. A long position is being braced for EUR/USD.

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

GBPUSD: The overall bias is still bearish on this pair, though the price is currently in some sort of rally. It is confirmed further 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 and it is 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. If there were a need to make a decision, I would prefer to go long. It is because the pair is currently above the EMA 21, while the RSI 14 is above the level 50.