23.08.201312:55 Forex Analysis & Reviews: Daily trading forecasts for August 23, 2013

EURUSD: The EURUSD has not made any protracted directional movement this week. The bullish gain that was made has been forfeited as a result of the recent significant bearish correction, which has failed to render the extant bullish bias completely useless. There is a need for the price to stay above the support line of 1.3300 – for the bullish bias not to be completely violated.

USDCHF:  This pair nosedived this week, and later trended upwards. This has made the market recover the loss it sustained, but it has not succeeded in rendering the primary bearish outlook invalid. The market needs to go above the resistance level of 0.9250 before the bearish outlook can become over. Otherwise, it would trend lower.

GBPUSD:  The Cable has experienced a prolonged pullback, after it reached a weekly high of 1.5700. The RSI period 14 gives a ‘sell’ signal but the EMAs are yet to follow suit. It is therefore better to wait for further confirmation before one takes a position. It is more likely that the price would trend upwards.

USDJPY: There has been a vivid Bullish Conformation Pattern on the chart, as the USDJPY moves significantly northward. Having moved upwards by over 170 pips this week, the price is poised to break the supply level of 99.50 to the upside.

EURJPY:  This cross moved sideways in a tumultuous manner, only to break out upwards. It was forecasted that when there would be a breakout, it would be towards the north. This is exactly what happened. The price has moved up by close to 220 pips this week, and it could reach the supply zone of 132.50 this today or next Monday.