FX.co ★ Daily trading forecasts for December 19, 2013

EURUSD: It is surprising that this currency trading instrument is going in a negative correlation to the Cable. The price plummeted on Wednesday and has led to a renewed bearish bias. It is better to sell here.

USDCHF: The price on this pair plummeted on Wednesday and has led to a renewed bullish bias. It is now possible for the EMAs to go in agreement with what the price is doing, should the buying pressure continues further. The Williams’ % Range is already in an overbought area. It is better to buy here.

GBPUSD: What happened yesterday has resulted in a Bullish Confirmation Pattern on this pair. The EMA 11 has crossed the EMA 56 to the upside, as the RSI 14 period has crossed the level 50 to the upside. The new bullish journey has begun.

USDJPY: Some fundamental figures would be released today, which would have further impact on the markets. There have been significant movements on most pairs and crosses, which have resulted in directional biases. The significant movements follow the direction of the bulls on JPY pairs, and therefore, the USDJPY moved upwards by over 160 pips, closing above the demand level of 103.98 (which was seemingly insurmountable until now). After the current southward retracement, the price could keep up going upwards.

EURJPY: This cross was also affected by the significant movement that occurred yesterday. The price closed above the demand zone of 142.00, but it is yet to reach the supply zone of 143.00 which would be a commendable achievement.