FX.co ★ Daily trading forecasts for April 3, 2013

EUR/USD: There was a serious threat to the primary bearish trend on this pair, but while a confirmation of the possible new trend was being awaited, it happened that the threat was only a correction. Since it has failed to cross the EMA 56 to the upside, the market would soon test the support line at 1.2800.

USD/CHF: From the start of this trading week, the pair has experienced a serious bearish correction (which almost threatened the extant bullish outlook). The USD/CHF is now trying to regain some of its weekly loss, for it has proven that it cannot dip below the support level at 0.9450. While it would be recommended that further confirmation be awaited, I would like to open a new long trade should the price continue to rally.

GBP/USD: The Cable is dropping like a brick. It first rallied at the start of this week, but further bullish rally was rejected at distribution territory of 1.5250 (just as it was rejected at that same distribution territory early last week). There is now a serious threat to the long-term bullish outlook; the RSI period 14 is already below the 50 level. Yet one would need to wait and see whether the EMAs would soon support the RSI, otherwise, the price could shoot upwards.

USD/JPY: After falling by over 170 pips this week, this instrument rallied. It should be noted that the instrument rallied just before it could touch the demand level at 92.50. Because the current primary outlook is still bearish, and there is no threat to it, the price could still test that demand level at 92.50 this week.

EUR/JPY: Since last week, up to the time of writing this article, the trend on the EUR/JPY has been bearish. However, this is not without some intermittent rallies, which invariably allow good short trades. This is what is happening right now, the current price action in the market is a good shorting opportunity. The price could ultimately touch the demand zone at 119.00.