FX.co ★ Daily Trading Forecasts (October 19, 2012)

EURUSD: From a high of 1.3138, the EURUSD pair has corrected lower by around 80 pips. The bullish bias is still valid, because the price is still above the EMA 56 and the RSI 14 has not crossed the level 50 to the downside.

USDCHF: USDCHF found a bottom at 0.9215, and has been in a slow and steady rally since then. The trend fundamentally remains bearish; since the price is still below the EMA 56 and the RSI 14 is below the level 50, though pointing up.

GBPUSD: The Cable reached a high of 1.6179, before plunging. This happened by more than 130 pips – something that poses a threat to any bullish possibility, especially the recent bullish signal. A continuation of this correction may lead to a ‘sell’ signal.

USDJPY: The correction that is happening on this market is clearly understandable, since the price will not move in a straight line. The RSI 14 reached the overbought region, and is retracing downwards. The ‘buy’ signals remain valid.

EURJPY: Here the correction is not that significant as well, as the price is not expected to fall below the demand zone at 103.00. The Williams’ % Range period 20 reached an overbought region and would understandably retrace. I still prefer a long trade.