FX.co ★ Daily trading forecasts for October 23, 2013

EURUSD: There has been some minor retracement in the market as it was trending upwards. The bullish bias is still a valid thing and it is expected that the price would not trade below the support line at 1.3600, which is a long term barrier to the bearish threats in the markets.

USDCHF: In USDCHF, the bearish trend is still very much valid. Because of the weakness in the greenback, the sharp reversals that were noted on other pairs did not affect this market. Actually, there is going to be a lot of activities around the support level of 0.8950 before the market goes further downwards.

GBPUSD: There is also a sharp pullback in the cable. But it ought not to go below the accumulation territory 1.6100 – otherwise the extant upward bias could be put in jeopardy. The aforementioned accumulation territory could be a good point to buy long, with a stop at the accumulation territory of 1.6000.

USDJPY: The price on this currency instrument is now trading far below the EMA 56, while the RSI period 14 has crossed the level of 50 to the downside. This is a Bearish Confirmation Pattern on the chart, leading to shorting opportunities. The price would soon strut towards the demand level of 97.00.

EURJPY: There has been a sharp southward reversal in the EURJPY. From the supply zone of 135.50, the price dropped by over 180 pips, and is now trading below the supply zone of 134.00. Further southward movement could render the dominant bullish trend invalid.