FX.co ★ Daily trading forecasts for February 18, 2013

EUR/USD: This pair tried to go up last week, but it was pulled down by sellers in the middle of that week. It can be safely said that last week was bearish on the EUR/USD, and that is exactly what is expected this week, a downward journey.

USD/CHF: The USD/CHF seems to have just started its long-term bullish journey. In the midst of consolidations and transitory pullbacks, the pair would trudge upwards, and that would also be valid for this week. It would be advisable to look only for long trades.

GBP/USD: The Cable closed last Friday at 1.5516. The bias for this was clearly bearish and that is what is expected this week, for the GBP is really without any strength right now. Only short trades ought to be sought.

USD/JPY: This market is still bullish – irrespective of large corrections that have characterized the market so far in this year. The transitory sell trade that was generated last Thursday was quickly rendered ineffectual. There is now a new lease of life for the bulls.

EUR/JPY: Since all JPY pairs tend to follow the same direction, (i.e. whatever is happening to the yen would have tremendous impact on these pairs), it would be advisable to wait until Tuesday before one makes a decision about this market. Whether this extant and new sell signal would be valid or it would be rendered useless and turns to new long opportunities, remains to be seen.