FX.co ★ Daily Trading Forecasts (October 26, 2012)

EURUSD: This week has been bearish for the EURUSD pair; a short trade has been signified on the chart. What started as a rally at the beginning of this week has proven to be an opportunity to sell short in a content of a new downtrend. It looks like EURUSD is headed for the support level at 1.2900.

USDCHF: This pair has moved up by close to 100 pips this week. A new bullish signal has been confirmed. It is done as it is assumed that the market would trend higher. The next target should be the resistance level at 0.9400.

GBPUSD: The cable is very strong right now. Or in order to be precise, it could be said that the GBP is very strong. The market fell below the crucial accumulation zone of 1.6000 this week, but further bearish plunge was rejected below this zone. The bottom for this week is 1.5916, and the price has gone considerably up since then. It is by around 200 pips.

USDJPY: The bullish USDJPY has gone up significantly without much retracement. Having moved up by almost 190 pips, the price is now experiencing some pullback. It is expected that this pullback could be halted around 79.50. It is understandable, since the RSI 14 period has been in an oversold territory for a long period of time. So this temporary pullback is not a surprise.

EURJPY: Strictly speaking, this week has been indecisive on the EURJPY pair. There is no clear victory between buyers and sellers, though I still prefer a bullish bias. If one would need to go short, then one would need to wait for more confirmation. I would stay out of this market, until a new direction is confirmed or an upward continuation is established.