FX.co ★ Daily trading forecasts for December 6, 2013

EUR/USD: Though slow and tardy, this market has managed to remain bullish for the most part of this week. The Bullish Confirmation Pattern on the chart remains valid in spite of the upswings and downswings in the market (in which the bulls dominate however). The price is currently trading above the support line of 1.3650 and the next target for the price is the resistance line of 1.3700.

USD/CHF: This market has managed to remain bearish for the most part of this week. The Bearish Confirmation Pattern on the chart remains valid in spite of the upswings and downswings in the market (in which the bears dominate however). The price is currently trading below the resistance level of 0.9000 and the next target for the price is the support level of 0.8850. It is especially noteworthy that the price could break the support level of 0.9000 to the downside.

GBP/USD: The conditions on this pair remain tricky as the price continues to pull further southward. This is a threat to the bullish bias – which could be rendered invalid when the price breaks the accumulation territory of 1.6300 to the downside.

USD/JPY: The USD/JPY dropped by almost 155 pips this week, which nearly resulted in a bearish signal on the 4-hour chart. However, the price appears to be turning upwards at the present. Further turning upward of this could result in the renewal of the recent bullish bias, especially if the RSI period 14 crosses the level 50 to the upside again.

EUR/JPY: Interestingly, the southward reversal that happened on the EUR/JPY for most part of this week did not succeed in overriding the dominant bullish bias on the market. The price has bounced back northward from the demand zone of 138.50, going towards the supply zone of 140.05.