FX.co ★ Daily trading forecasts (May 29, 2013)

EURUSD: The indication on the market is bearish – since the price is going south. The price is currently trading below the resistance line of 1.2900, besieging the market line at 1.2850. The market line at 1.28050 ought to be breached to the downside very soon, after which the price would go for the support line at 1.2800.

USDCHF: Here, there is a ’buy’ signal. This week, the price has succeeded in rejecting further bearish threats on it. The EMA 11 is above the EMA 56, and the Williams’ % Range is in the overbought region. The next price target would be the resistance level at 0.9800. One would do well to seek long trades only.

GBPUSD: The overall bias on this instrument has been to the downside (for the most past of this month of May 2013). The price has dropped by 550 pips this month; you can now see why any rally would essentially be short-term, posing a nice chance to go short at a slightly higher price.

USDJPY: On the USDJPY pair, the signal is ‘buy.’ There is a Bullish Confirmation Pattern on the chart, and the indicators support this. The price is above the demand level at 102.00, and of course, above the EMA 56. The RSI period 14 has gone above the level 50. The price may go further upwards.

EURJPY: On this special cross, there are mixed signals. The EMAs signify a bearish possibility, but the RSI period 14 lies in a neutral region. Classically, the best position to take here is to sit on the fence: until there is a clear signal on the market. In less the 30 hours, the market should give a clear indication of its intent.