FX.co ★ Daily Trading Forecasts (November 18, 2012)

EURUSD: This market, which started trending upwards last Tuesday, bounced against the resistance line at 1.2800. Since then (particularly last Friday), the price dropped, but could not go below the resistance line at 1.2700. This week, it is a break above the level at 1.2800 or below the level at 1.2700. It will determine the eventual destination of the market.

USDCHF: The USDCHF pair was also able to regain some of the losses it had sustained since Tuesday last week. The price is currently resting near the support level at 0.9450. If it breaks below it, the price will go down to the support level at 0.9400; otherwise, it will go up towards 0.9500.

GBPUSD: The cable trended down last week, but it was involved in a weak rally at the latter part of that week. The price touched the zone at 1.5900 (that is where the weak rally was checked). If the price succeeds in breaking this zone to the upside, it could potentially mean the end of the bearish force.

USDJPY: The USDJPY pair is an example of the currency instruments that are currently caught in equilibrium zones. The price is currently above the territory at 81.00, and will need to go above the territory at 81.50 before the recent bullish attempt could continue.

EURJPY: This cross was involved in a significant bullish outbreak last week. But further bullish attempt was rejected at the supply zone of 104.00. The price retraced and touched the demand zone at 103.00. There should be a break above the zone at 104.00 or below the zone at 103.00 before the next direction could be determined. As long as the price remains between the foregoing zones, it will be in an equilibrium phase.