FX.co ★ Daily trading forecasts for May 23, 2013

EUR/USD: This pair has lost the gain it saw at the beginning of this week – it just happened that the supposed northward upsurge was only a rally in the context of a downtrend. The price spiked towards the resistance line of 1.3000 and dropped sharply. The next bearish target is the support line at 1.2800. That line could be retested again.

USD/CHF: From the consolidation to the upside, this pair has gone upwards so far, breaching the resistance line of 0.9800, but failing to close above it. That resistance line could be retested again after the current retracement has thinned out. After that resistance line is possibly breached to the upside, the northward journey could continue.

GBP/USD: The Cable has dropped by over 140 pips this week, plus it seems this is just the beginning. The market could continue dropping towards the accumulation territory at 1.5000. Any potential bullish retracement may not take the price above the accumulation territory of 1.5100.

USD/JPY: This is a bull market, and it has continued to be bullish in spite of the occasional southward retracements that occur in the market. Any southward retracements in the market would invariably present opportunities to go long. That is exactly what is happening in the market right now.

EUR/JPY: This is also a bull market, as the price has already gone upwards by roughly 200 pips this week. The price moved upwards towards the supply zone at 133.50, violated it to the upside, and then got corrected to the downside. In spite of the current bearish correction, the ultimate target is 134.00.