FX.co ★ Daily trading forecasts for July 3, 2013

EUR/USD: EUR/USD has continued going downwards - testing new lows. This time around, the new low to be tested is the support line at 1.2900, after it has breached the support line at 1.2950 to the downside. However, this could come with some bullish threats, which could be temporary in nature.

USD/CHF: This pair has continued to move further upwards in a slow and steady manner. It is currently trading above the price level at 0.9500, therefore targeting the new resistance level at 0.9600, after it would have crossed the price level at 0.9550 to the upside. There could be some transitory southward pulls along the way.

GBP/USD: It is now clear that the supposed optimism surrounding the Cable cannot even help it. This instrument has fallen by more than 400 pips since the last month, and has continued to do so, with this kind of scenario, it is better to seek short trades only. The accumulation territory at 1.5100 is the next target.

USD/JPY: In what is called a vivid Bullish Confirmation pattern, USD/JPY has gone upwards by roughly more than 140 pips in this week, breaking the important psychological demand level at 100.00 to the upside. The pair does not show any sign of relenting; and therefore, it would continue going upwards.

EUR/JPY: In tandem with other JPY pairs, the weak EUR itself has been going upwards. This is possible because EUR happens to be stronger than JPY at the moment (the yen is weaker indeed). There is a conspicuous northward bias in the chart, and the next target that could be tested is the supply zone at 131.00. It was tested once and it could be retested.