FX.co ★ Daily trading forecasts for February 22, 2013

EUR/USD: The EUR/USD has moved downwards significantly this week, and there is still more room for it to run. The EMA 11 is below the EMA 56, and the Williams’ Percent Range has been in an oversold situation. The next price target should be the support line at 1.3150.

USD/CHF: The bullish bias on this market is now conspicuous. The EMA 11 remains above the EMA 56, and the Williams’ Percent Range is in the overbought territory. The price is currently trading above the market level at 0.9300; the next target could be the resistance level at 0.9350.

GBP/USD: This is a bearish market and it remains so. The Cable, having fallen by 260-300 pips this week, found a temporary accumulation area around the market territory of 1.5150. There is currently an upwards bounce from that territory, and this would proffer a wonderful opportunity to sell the rally in the context of a downtrend.

USD/JPY: There is a new southward indication in the chart. The USD/JPY had proffered several bogus sell signals in recent weeks, and therefore the current scenario would be approached with caution. Here, there is another short signal, but I would prefer to wait for a least, another 24 hours in order to confirm the permanence of this new bias.

EUR/JPY: As it was forecasted, the EUR/JPY broke downwards on Thursday (below the price zone of 124.50). The EMA 11 ran below the EMA 56, and the RSI period 14 is far below the 50 level. This cross has dropped by nearly 300 pips! There is now a Bearish Confirmation pattern in the chart. Only short trades are recommended.