FX.co ★ Daily trading forecasts (May 16, 2013)

EURUSD: Having dropped by over 110 pips this week, the EURUSD pair is in a vivid bearish mode. The price is hovering below the market line of 1.2900, and the target at 1.2800 is not a lofty ambition, for this week or the next week. Any short-term bullish rally should not take the price above the market line of 1.2900.

USDCHF: In opposition to the EURUSD pair, the USDCHF pair is going northwards (given the current strength of the greenback). This pair is trading above the support level of 0.9600. The price level at 0.9700 has been thrust through violently, before the present retracement to the downside. The bulls are now showing some renewed energy and would be going towards the resistance level at 0.9700 again.

GBPUSD: This instrument is also weak – again as the result of the strength of the greenback. The price has dropped by roughly 140 pips this week, and it is trading below the distribution zone of 1.5250. The Bearish Confirmation Pattern on the chart is still very strong, and the price would continue going lower when it leaves the current hesitation mode.

USDJPY: This pair remains a strong one, both historically and in de facto. However, the bullish journey this week has not been that significant, and there is a big supply zone at 103.00. This must be breached upwards before the price can go further.

EURJPY: Overall, it can be said that the EURJPY pair was consolidating to the downside, and in the context of an uptrend. The EMAs still support a northward outlook, whereas the RSI period 14 has been going below the level 50. One would need to wait for a clearer direction before proceeding further.