FX.co ★ Daily trading forecasts (July 4, 2013)

EUR/USD: The Bearish Confirmation Pattern on the market is still valid, irrespective of recent rallies that happened in the markets. It only happens that the rallies gave opportunities to sell short in the context of a downtrend. The next support line to be tested again is the one at 1.2950 (it was once tested recently).

USD/CHF: The USD/CHF seems to be moving upwards in more predictable manner than its EUR/USD counterpart. The resistance level at 0.9500 is already under attack, and would probably be breached to the upside, as the price goes towards the resistance level of 0.9550. Yes, it looks good to call long trades.

GBP/USD: The Cable managed to rally significantly yesterday, yet, the downward bias is still far from being over. It is a kind of there are mixed signals on the chart: the RSI period 14 is slightly above the level 50, whereas the price is still below the EMA 56. One would need to wait for further clarification before one takes a side.

USD/JPY: Since the price is above the EMA 56 and the RSI period 14 remains above the level 50, it is safe to continue looking at this currency instrument as a bull market. The pullback that is currently on is not a surprise – it is something that must follow a breach of important supply levels.

EUR/JPY: There are also mixed signals on this cross. The RSI period 14 is giving a bearish signal while the price stays above the EMA 56. It is better to wait until there is an agreement in both indicators. It is either the RSI goes above the level 50 or the price falls below the EMA 56: then one could take a position.