FX.co ★ Daily trading forecasts for August 2, 2013

EURUSD: The bullish scenario on this pair has been rendered invalid by the current bearish threats. There is now a bearish signal on the chart, but it is better to wait for the price to break the market line of 1.3200 to the downside, even closing below it. Then short trades would make more sense.

USDCHF: Here, the event on EURUSD is almost true in an opposite fashion. The bullish corrections here have resulted in a violation of the recent bearish scenario (which is no longer valid). The indicators on the chart have supported this view, but it would be a kind of better to wait for the price itself to break the resistance level of 0.9400 to the upside and even close above it.

GBPUSD: The cable is also trying to rally… But sorry, this is in the context of a bear market (which is still valid). This means that the current price action is a good indication to go short at a slightly dearer price. It is more likely that the cable would get weaker, if EURUSD gets weaker.

USDJPY: The significant reversal that happened this week on this currency instrument has resulted in a Bullish Confirmation Pattern on the chart. From the weekly low at the demand level of 97.60, the price rose upwards by more than 210 pips, going towards the great psychological supply level of 100.00. Historically, this great level has been breached upwards and downwards with relative ease.

EURJPY: The cross, as it is wont to behave according to the major outlook on the JPY pairs, no matter what happens on the EUR itself, is also moving northward significantly. The next target seems to be the supply zone at 132.00.