FX.co ★ Daily trading forecasts for August 20, 2013

EURUSD: The EURUSD is not very strong but the northward bias on the Cable is helping it to remain in the bullish zone (for the duo tends to be positively correlated). Though the price is turbulent, it might eventually touch the resistance line at 1.3400. The Williams’ % Range is in the overbought territory, signifying that the current bias is formidable.

USDCHF: The USDCHF finally gave way to gravity last week. Since then, it has gone down by almost 85 pips. The support level at 0.9200 is in the possibility of being tested, even probably breached to the downside. Should the price eventually close below that support level, the next target would be 0.9150.

GBPUSD: The optimism surrounding the Cable has continued without relenting.

The Cable has broken the former distribution territory at 1.5650 to the upside. Right now, it is trading above that territory. Eventually, the price may reach another distribution territory of 1.5700.

USDJPY: This is a bear market – though the latest bullish threats nearly violated the bearish outlook. There is a Bearish Confirmation Pattern on the chart and the price could go on trending downwards, reaching the demand level at 96.50. Yes, the price could end up trading below the market level of 97.00.

EURJPY: The recent bearish pull on this currency instrument has put the extant northward outlook in jeopardy. The RSI period 14 has gone below the level 50, but the EMAs are yet to follow suit. At the time of writing this forecast, a bearish engulfing pattern candle was in place. It is better to wait for further confirmation of the price direction.