FX.co ★ Daily trading forecasts (May 15, 2013)

EURUSD: This is a weak market and the bearish trend is highly vivid. The indicators on the 4-hour chart confirm this Bearish Trend Pattern. Even if there is any bullish retracement, it would be a nice opportunity for sellers to sell dearer. Short trades are still preferred here, and the price could reach the support line at 1.2800.

USDCHF: This is a strong market and the northward bias will continue, irrespective of any possible pullbacks on the market. The pullbacks ought not to take the price below the support level at 0.9600. With the current extant Bullish Confirmation Pattern, the price could go upwards towards the resistance level at 0.9800.

GBPUSD: The cable is still weak, very weak in spite of the fact that the price has bounced off the accumulation territory at 1.5200. This is a unique opportunity to sell short when the price rallies in the context of an overall downtrend. It is expected that the price would go down to retest the accumulation territory at 1.5200.

USDJPY: This instrument is in a bullish mode. The price is above the EMA 56, and the RSI period 14 is above the level 50. Do not open short trades yet, for the price could be going towards the supply zone at 103.00. This target is likely to be attained this week.

EURJPY: The EURJPY cross is also in a bullish mode, though the price has been largely consolidating this week. The weakness of EUR is what makes the situation on the chart to appear like that. What is happening now is a bearish retracement – a weak one indeed. The demand level at 131.50 is ready to halt any further southward threats.