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

EURUSD: This market moved sideways yesterday – as the RSI period 14 stayed flat in the overbought region. The bullish bias is still valid. The price is resting on the support line at 1.3150, and if the support line could not be broken downwards, the price could go up towards the resistance line at 1.3200.

USDCHF: Like the EURUSD pair this pair also traded in a range on Monday. The bearish signal is still extant, and the RSI period 14 remains in the oversold region. There is a resistance level at 0.9200, and if the level holds any possible bullish attempts, the price will fall further.

GBPUSD: This instrument was not range-trading on Monday; rather, it moved upwards. The northward bias is now very strong. The price stays above the EMAs 11 and 56, and the Williams’ % Range stays in the overbought area. The distribution zone at 1.6200 remains besieged, and when it is broken, the price could go on to the zone at 1.6250.

USDJPY: There is a significant gap on this market, after which it traded downwards. This means two things. Firstly, this market would move considerably this week. Secondly, the price could go downwards, reaching the demand territory at 83.00 this week.

EURJPY: This cross also experienced a significant gap, followed by some plunge in the market. This could be a threat to the current bullish signal, and should this prove to be true, the price could reach the demand zone at 109.00 this week. But it would have to break the demand zone at 110.00 to the downside first.