FX.co ★ Daily trading forecasts for October 16, 2013

EURUSD: It is now clear that this pair would be unable to sustain its recent bullish signal. As a result of the bulls’ inability to push the price further upwards, the bias has turned bearish (the EMA 11 has crossed the EMA 56 to the downside, and the Williams’ % Range has gallivanted to the oversold area).

USDCHF: Since EURUSD has shown a clear sign of weakness, USDCHF is now showing a clear sign of strength. There is a Bullish Confirmation Pattern in the chart, and it is very much likely that the price would end up reaching the resistance level of 0.9200. There is an immediate support at 0.9100.

GBPUSD: In spite of the palpable turbulence here, there still exists the bearish outlook on the currency instrument. There is a great barrier to the bulls’ interest at the price territory of 1.6000, while the instrument may go towards the accumulation territory of 1.5900. It is thus expected that the price would move between the aforementioned market territories.

USDJPY: USDJPY has found support at the demand level of 98.00. Meanwhile, the price is supposed to move towards the supply level at 99.00. As far as the Bullish Confirmation Pattern in the chart is valid, it does not look sensible to assume short positions.

EURJPY: Although this cross trended lower on Tuesday, the northward bias in this cross is still valid, partly because of the positions of the indicators in the chart, and because the price has seen a challenge to the bearish attempt at the EMA 56. As long as the price stays above the EMA 56, the bullish bias remains.