FX.co ★ Daily Trading Forecasts (December 5, 2012)

EURUSD: The EURUSD pair had some moderate bullish journeys on Tuesday – in spite of the gloomy forecasts. The indicators on the chart still support a clean northward bias, though one should pay attention to the RSI period 14, which is now in the overbought region, i.e. above 70. This might lead to a bearish pullback on the market before the continuation of the upward journey. Since the resistance line at 1.3100 is being battered, the next target will be the line at 1.3150.

USDCHF: The USDCHF pair is having a very difficult time in finding the next sustained move in the price. The level at 0.9250 has succeeded in halting any further bearish move, at least temporarily. The resistance level at 0.9300 should also prevent any break above itself as well. The EMAs and the RSI period 14 are still giving a strong indication of a bearish bias – unless the other scenario is indicated. So it is still expected that the price will break the support level at 0.9250 to the downside.

GBPUSD: On this market, there has not been any significant pullback in spite of the fact that the Williams’ % Range is in the overbought level – particularly recently. The EMAs still support the strength of buyers. The prize zone at 1.6100 has already been attacked, and the distribution zone at 1.6150 will be reached when the price goes further upwards.

USDJPY: Yes, there is a brand-new signal on the USDJPY pair. That signal is: SELL. This has been indicated by the RSI 14 period since the beginning of this week, before it was indicated at the situation happening to the EMA 56. The price is now below the aforementioned EMA (as it goes down lower). The demand territory at 81.50 is still tested.

EURJPY: The consolidating phase of the EURJPY pair remains as it is. One big reason for it is that both EUR and JPY are strong, and their individual strength is almost not more than the other rival. The price continues to vacillate between the zones at 107.00 and 107.50, while the Williams % Range is trying to head downwards from the overbought region. A strong break outside either of these zones determines the next movement on the market. Any sign of weakness of EUR will definitely give JPY an upper hand.