FX.co ★ Daily trading forecasts for May 7, 2013

EUR/USD: This pair traded downwards on Monday – something that poses a serious threat to the current bullish outlook. The Williams’ Percent Range is already in the oversold area, and for the bullish outlook to continue to be valid, the price must stay above the support line at 1.3000, otherwise, there would be a clear sell signal.

USD/CHF: The USD/CHF moved upwards on Monday, just in the opposite manner to its EUR/USD counterpart. There is a Bullish Confirmation pattern in the chart (a long signal), for the EMA 11 is above the EMA 56, while the Williams’ Percent Range is in the overbought situation. The price could go northwards.

GBP/USD: Despite the current bearish retracement on this instrument, the major bias is still towards the north. For this bias to continue, it must never go below the accumulation territory at 1.5400, or else, there would be a new bearish possibility. Ultimately, the market could go towards the distribution territory at 1.5600 (which has already been tested).

USD/JPY: This pair manage to trudge northwards a little on Monday, in the context of an overall bullish bias. The price is now close to the major supply level at 100.00; which would be overcome with much difficulty before the price can trade above that level. Should there be a failure here, it would be normal to expect a sell-off.

EUR/JPY: Because of the prevalent sideways movement on this cross – though in a context of an uptrend – it would be safe to declare that, even if the price moves further upwards this week, it may not be able to breach the supply zone at 131.00 to the upside. Should this prove to be true, there could be a resumption of a bearish run.