FX.co ★ Daily trading forecasts for November 1, 2013

EURUSD: The constant bearish pressure on EURUSD has led to a Bearish Confirmation Pattern in the chart. The pairs has nosedive from the resistance line of 1.3800 this week, going towards the support line of 1.3500. This is really a massive bearish pressure!

USDCHF: The strength of USD, or the weakness of EUR (whichever is apt), has resulted in a Bullish Confirmation Pattern in this market. The price is edging towards the resistance level at 0.9100, while the immediate support level at 0.9050 would act as a barrier to any short-term southward threats. Would the USD reach parity with the CHF this year or next year! Only time will show.

GBPUSD: The cable is also in the weak market, in spite of its current consolidation and in spite of its refusal to go strongly bearish as EURUSD has done. The price is below the EMAs 11 and 56, while the RSI period 14 is below level 50. When a breakout does occur in this context of a downtrend, it would most probably be to the downside.

USDJPY: Initially, this market went upwards this week, going as far as the supply level of 98.50. Here, the northward move was challenged and the price yielded to gravity (as evident in most other JPY pairs). Looking at the position of the indicators in the chart, one would see a confirmed ‘sell’ signal in the market.

EURJPY: This week, EURJPY has gone significantly bearish. From the beginning of this week to the time of preparing this forecast, the pair, which is now trading below the supply zone of 133.00, has gone downwards by up to 250 pips. Sell!