FX.co ★ Daily trading forecasts for November 7, 2013

EURUSD: This is a bear market, and the current upward bounce in the price is most likely to be transient. The upward bounce is not supposed to take the price above the resistance line of 1.3600, even in a worse-case scenario. Eventually, the price may go downwards again to test the support level of 1.3450.

USDCHF: The EUSDCHF pair is currently trading within some equilibrium phase, although the dominant bias is bullish. Thus, it is more likely that when a breakout occurs, it would be to the upside. The fundamental figures coming out today would have an impact on this pair; pushing it out of the present equilibrium phase.

GBPUSD: As it was forecasted yesterday, the Cable has closed above the EMA 56, trading further upwards. The EMA 11 has also closed above the EMA 56. Coupled with the position of the RSI period 14, it is not difficult to see the reason why there is a Bullish Confirmation Pattern on the chart. This means that it is better to look for long opportunities here. However, it is a surprise that the EURUSD pair is bearish, for the Cable ought to be in a positive correlation with it. In these fantastic FX markets, wonders shall never end.

USDJPY: Here, the indicators on the chart confirm the bullish probability on this pair. The price itself has found a support on the EMA 56, after the recent transitory bearish run that has happened this week. The price is now consolidating to the upside and may reach the supply level of 99.00.

EURJPY: This cross is also trying to edge upwards, but one would need to wait for the price to cross the EMA 56 to the upside and close above it before going long. The RSI period 14 has already given a long signal.