FX.co ★ Daily trading forecast for Tuesday (January 22, 2013)

EURUSD: This pair still consolidates between the resistance line at 1.3350 and the support line at 1.3300. There must be a clear break above this aforementioned resistance or below the support before there could be the next forecasted price direction. Nevertheless, it can be said that the probability of the price movement is to the upside.

USDCHF: It is very much likely that the USDCHF pair would continue to nosedive within the next several days. The Williams’ % Range is now heading into the oversold region, as the price falls below the price level at 0.9300. The next price target could be the support level at 0.9250.

GBPUSD: What is surprising here is the inherent weakness in the cable, in spite of buyers attempt to push up the price. The indicators on the chart still support a clean bearish outlook. Long trades are not recommended yet.

USDJPY: Sell and sell short – on the USDJPY pair. After much battle between buyers and sellers, the pair gave in to gravity. The price is now below the EMA 56 and the RSI period 14 has gone below the level 50. The demand zone at 88.00 is not a lofty target.

EURJPY: A bearish indication is now forming on this cross. The RSI period 14 is below the level 50, but the EMA 11 is yet to cross the EMA 56 to the downside. This means that there is yet more time to waite for a bearish confirmation pattern on the chart, but right now, the bearish pressure is building.