FX.co ★ Daily trading forecasts for August 28, 2013

EURUSD: EURUSD is in an uptrend, though it has not moved upwards in a significant manner. The resistance line at 1.3400 is battered and it will probably be breached upwards as the price goes upwards towards another resistance line at 1.3450. The probability of the price moving upwards is strong.

USDCHF: On the flip side, this pair is in downtrend, which has been in place since last week. The price is now trading below the resistance level of 0.9200, going towards the support level of 0.9150, which is the ultimate target for this week.

GBPUSD: The Cable, which was supposed to be in positive correlation with EURUSD, is currently in negative correlation with it. This kind of phenomenon is not usual, however, it happens sometimes. Presently, the pair is in downtrend, long trades are not advisable yet.

USDJPY: USDJPY has dropped roughly by170 pips this week, and the price is currently testing the demand level of 97.00. This is a bear market and it is possible that the price would eventually succeed in breaching the aforementioned demand level in downward direction. It goes further towards next demand level of 96.50.

EURJPY: This currency instrument is in the significant bearish mode. It came down heavily on Monday and Tuesday – a scenario that has eventually resulted in a Bearish Confirmation Pattern in the chart. The market zone at 130.00 is becoming a weak barrier to the bears’ interests, plus the demand zone of 129.50 could be next target.