FX.co ★ Daily Trading Forecasts (December 6, 2012)

EURUSD: The bullish bias on the EURUSD pair is still intact. The price is currently consolidating to the downside, but it might not go below the support line at 1.3050. When the buying pressure resumes, it will touch the resistance line at 1.3100.

USDCHF: The price has found it difficult to break the support level at 0.9250 to the downside, there was no bullish thrust that could even take the price towards the resistance level at 0.9300 either. The price has been moving sideways since the beginning of this week and there will be a break above or below any of the aforementioned levels before any sustained movement can occur. However, the bearish outlook remains.

GBPUSD: There is still some northward pressure on this market, which means that the upward bias is still intact. The Williams’ % Range is still moving around the overbought territory perpetually. The price has broken the distribution zone at 1.6100 to the upside. The next target could be the zone at 1.6150.

USDJPY: The bearish signal that was indicated on the chart below has proven to be invalid as the RSI 14 period moves above the level 50, and the price itself reverts back above the EMA 56. This occurred because of the protracted weakness in the yen, not because the greenback is particularly strong. The next target in the upper region could be 82.50 that would be breached eventually to the upside.

EURJPY: It continues to be a bull market. All the indicators on the chart back this assumption. The Williams’ % Range is showing continuous abundance of energy on the part of buyers. The price is going upwards steadily, and it could reach the supply zone at 108.00.