FX.co ★ Daily Trading Forecasts (November 20, 2012)

EURUSD: The EURUSD pair has shown a strong determination to continue moving upwards. The RSI 14 period is far above the level 50 and is pointing towards the level 70, while the EMA 11 and 56 are aligning themselves in an effort to confirm the new northward bias. If the northward bias continues today, it will lead to a clean bullish confirmation.

USDCHF: The price in this market is currently resting on the support level of 0.9400. If the price crosses it to the downside, the next target will be the support level at 0.9350. The RSI level 14 is far above the level at 50; going towards the level 30. The EMAs will confirm this outlook, if this scenario continues today.

GBPUSD: This weak instrument failed to trend upwards on Monday – alongside its EURUSD counterpart. Instead, it range-traded along the accumulation zone at 1.5900. In a bigger picture, the price is trying to retrace upwards; the Williams’ % Range is pointing to the overbought territory. The market may go upward towards the distribution zone at 1.5950 today.

USDJPY: The USDJPY pair still stays in a range, i.e. between 81.00 and 81.50. Within this range, the bulls are threatening to wield more energy. Eventually, the pair will go the way of other JPY pairs. The supply territory at 81.50 could be breached to the upside today.

EURJPY: The strong EURJPY pair is trying to reach for the sky. The supply zone at 104.00 was broken upwards, as the price targets the zone at 104.50. The EMA 11 is above the EMA 56; while the Williams’ % Range is around the overbought region. The transaction pressure here is bullish.