FX.co ★ Daily trading forecasts for February 14, 2013

EUR/USD: The expected Bullish Confirmation pattern in the EUR/USD chart is being rendered invalid, and therefore, a long trade is not ideal right now. The price has reverted back below the EMA 56, and the Williams’ Percent Range is heading downwards. One may look for a sell trade.

USD/CHF: In spite of the present consolidation on this market, the bullish possibility is still valid. The indicators support a northward outlook, save for the William’s Percent Range, which is heading downwards. A breakout above the resistance level at 0.9200 is expected, so that the bullish continuation could take place.

GBP/USD: There was a significant bearish spell on Wednesday, and the Cable is poised to continue going down lower. The accumulation territory at 1.5500 stands a chance of being breached to the downside. Only short trades are sought.

USD/JPY: The northward outlook is ever valid on the USD/JPY. What would be happening are higher highs and higher lows – more up leg, followed by temporary retracement. The best approach here is to buy the dips in the market.

EUR/JPY: The retracements on the EUR/JPY cross are not as many as that of the USD/JPY. This cross consolidates, but still has the determination to go further upwards. So far, the price has been bullish for this week, and may soon breach the supply zone at 126.00 to the upside.