FX.co ★ Daily trading forecasts for February 8, 2013

EUR/USD: What started as negligible reversal this week has already turned out to be significant. The market has already dropped by over 220 pips this week! The EMA 11 has already crossed the EMA 56 to the downside, and the Williams’ Percent Range is in an oversold territory. There is a sell signal.

USD/CHF: The USD/CHF (being expected to trade in vivid correlation against the EUR/USD) simply traded sideways throughout this week. There has been no clear direction so far, but if the EUR/USD continues to go down, the USD/CHF might form a Bullish Confirmation Pattern. Till then, it is better to stay out of this market.

GBP/USD: The outlook for this pair is bearish in spite of about 2 bullish attempts we saw this week. The EMA 11 is still below the EMA 56 and the RSI period 14 has yet to cross its 50 level to the upside. Eventually, the Cable would trade in tandem with the EUR/USD.

USD/JPY: The bias here points to a northward possibility – something that remains relevant. This week so far, the market has been unable to break the supply level at 94.00 to the upside. Should the present scenario continue today or tomorrow, the price would eventually break that level to the upside.

EUR/JPY: The situation on the EUR/JPY is very tricky right now. In the context of an uptrend, the price went up with some attempts, but eventually gave up all the temporary gain, before plummeting by over 100 pips. A continuation of the current event on this price would eventually render the long-term northward outlook useless.