FX.co ★ Daily trading forecasts for February 11, 2013

EUR/USD: The EUR/USD dropped by more than 260 pips last week. The EMA 11 has finally crossed the EMA 56 to the downside, as the Williams’ Percent Range remains in the oversold area. There is a new sell signal on the EUR/USD.

USD/CHF: The USD/CHF consolidated largely to the upside throughout last week. It can be said that the bias for the last week was bullish (the pair trudged upwards by roughly 100 pips). Right now, the EMA 11 has crossed the EMA 56 to the upside, and the Williams’ Percent Range has reverted back to the overbought region. The bias for this week is bullish.

GBP/USD: The Cable continues to trade in a negative correlation mode against its EUR/USD counterpart. The pair first trended downwards last week, but recovered its losses and had a weekly gain of close to 120 pips. Right now, a Bullish Confirmation signal is being formed in the market, but one would do well to wait for a clearer signal.

USD/JPY: The reversal in this market was equally significant last week, though it was not significant enough to override the primary bullish trend. Last week, there was no victory between the bull and the bear. The RSI period 14 has crossed the 50 level to the downside. It is not until the price crosses the EMA 56 to the downside and closes below it that a new sell signal would be valid.

EUR/JPY: This cross dropped by at least, 260 pips last week. The RSI period 14 has crossed the 50 level to the downside. Only less than 24 hours of further bearish move would show the Bearish Confirmation Pattern in the chart, unless some event overrides this expectation.