FX.co ★ Daily Trading Forecasts (October 24, 2012)

EURUSD: This pair was bearish yesterday, and further continuation of this bias could lead to a confirmed ‘sell’ signal. The support line at 1.2950 is being besieged – as it stands the chance of being breached to the downside. The RSI 14 period is far below the level 50.

USDCHF: USDCHF was bullish yesterday – almost significantly. A continuation of this bullish pressure would eventually lead to a valid ‘buy’ signal later today. The nearest resistance level is at 0.9350 (with a possibility of being tested). The RSI 14 period is far above the level 50.

GBPUSD: The cable has continued showing weakness as the EMA 11 remains below its EMA 56 counterpart. That said, the Williams’ % Range is now in the oversold region, so a short-lived pullback would not be a surprise. The psychological level at 1.6000 was eventually violated on the downside. The next target is the accumulation zone at 1.5900.

USDJPY: The supply territory at 80.00 still proves formidable for the price on this market. USDJPY has shown its unwillingness to pull back significantly. That supply territory is being besieged, and may yield to bulls’ attack as the northward pressure resumes. The price is far above the EMA 56, and the RSI 14 is in a perpetual oversold condition.

EURJPY: There was a conspicuous pullback on this cross yesterday. The supply zone at 104.50 rejected further bullish attempts. The price closed at the demand zone of 103.50, and later bounced up. The signal on this cross is still a "buy", especially considering the situation on the Williams’ % Range period 20.