Daily trading forecasts (July 5, 2013)
EUR/USD: The pair has been trending lower in this week – having gone down by more than 130 pips. This downward trend is expected to continue, and the price could break the support line at 1.2800 to the downside, should the fundamentals coming out today favor the extant outlook on this market.
USD/CHF: Yes, the USD/CHF has been slow and steady in its upwards movement. One way of explaining this is the fact the greenback is very strong right now (for it is moving upwards against most currencies). Having gone upwards by more than 230 pips in this week, a few resistance levels have been breached.
GBP/USD: There is no longer any optimism around the GBP/USD and this is obvious. Even the massive rally that happened on July 3, 2013 has proven to be a good opportunity to sell short in the context of this major bear market. The price has fallen by over 200 pips in this week, and it would continue falling.
USD/JPY: The JPY is strong and the USD is strong. It now appears that the USD is stronger than the JPY, for the bias on the USD/JPY is towards the north. There is still a Bullish Confirmation Pattern on the chart, and the price is expected to go upwards towards the supply level of 101.00.
EUR/JPY: This cross is not that buoyant right now, and this is easily explained to be the result of the weakness in the EUR itself. In order to be realistic, the bearish threats in the market are becoming unavoidable as the RSI period 14 has gone lower than the level 50. The price itself is making effort to breach the EMA 56 to the downside. One would need to stay aside for now.
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