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Sunday, October 20, 2013

Daily Trading Forecasts for October 21, 2013


Last week, the GBPUSD shot towards the north. Some transitory pullback is normally expected, but the northward bias is valid for this week. 



EURUSD: The pair moved upwards by more than 140 pips last week, but not after disheartening pullbacks and volatility. This week, it is expected that the upward move would continue, though there could also be some bearish corrections along the way. There is a support line at 1.3600.

USDCHF: The USDCHF has been trending downwards with limited thrust. This is because the price has not been able to break the support level of 0.9000 to the downside, although that feat would be achieved this week (especially in the face of the continued Bearish Conformation Pattern in the market). 

GBPUSD: Last week, the GBPUSD shot towards the north. Some transitory pullback is expected, but the northward bias is valid for this week. On Friday, the price closed at 1.6169. The accumulation territory of 1.6100 ought to serve as a barrier to the bears’ machination, while the market attempts to journey upwards.

USDJPY: This is a bear market, and it is slightly strange so (for most other JPY pairs hold their ground in the face of the bears’ attack). The price is below the EMA 56, and the RSI period 14 is below the level 50. However, should the bearish move continue, it might be limited in nature – perhaps not going below the demand level at 97.00.

EURJPY: This cross is a great indication of the stamina in the Euro. The overall bias is bullish, and it is understood that, should the EURUSD continue to go upwards, this cross would also be doing something similar, although some consolidation phases and price retracements cannot be ruled out along the way. 

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Eye-opening trading lessons: http://www.harriman-house.com/experttraders



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