FX.co ★ Daily trading forecasts for May 20, 2013

EUR/USD: The EUR/USD dropped by close to 150 pips last week, leading to the perpetual Bearish Confirmation pattern in the chart. Last Friday, the price closed at 1.2837: it may reach the support line of 1.2800 very soon. There could be some hesitation around that support line, but it should be violated to the downside before the downwards bias could continue.

USD/CHF: This is a bull market which has moved upwards by at least 150 pips recently. The indicators in the chart confirm this northward bias; yet there is a serious barrier to further bullish scenario. That barrier is at the resistance level at 0.9750. Once this is breached to the upside, the northward bias would continue.

GBP/USD: The Cable dropped by over 180 pips last week – closing at 1.5167. The price is now trading under the market territory at 1.5200, and the accumulation territory at 1.5150 is the next easy target for the wily bears. This territory would be breached sooner or later; to the downside and the market would continue trading downwards.

USD/JPY: Since the beginning of April 2013, this instrument has been in a bullish mode, and it has moved upwards by over 1100 pips since then. In the last 5 trading days, it moved by another 145 pips, closing at 103.30. The bullish bias is still on the move.

EUR/JPY: The market has also proven to be able to break out in the direction of the northward bias. The indicators in the chart support the northward bias, but what has happened recently is not significant enough. However, there ought to be a continuation of the northward bias.