EURUSD: There was a serious bearish breakout on this pair, and it was something that took away all the bullish gains on the market. The price plummeted by over 120 pips, staying below the line at 1.3000. Currently, the RSI 14 period is below the level 50. Only further bearish plunge of a few more days may render the present bullish scenario totally useless.
USDCHF: Finally the ranging USDCHF broke out of its range. We can see that from Monday to Thursday (this week) the price had refused to go below the supply level at 0.9250 (that was a unique bottom), even when the EURUSD pair was going up. The price rose by 80 pips on Thursday, causing the RSI 14 period to go far above the level 50. If this upward thrust continues today, I am willing to open a long trade on November 9, 2012.
GBPUSD: The cable dropped on USD sudden gain of stamina by over 70 pips. This forced the Williams’ % Range to fall back from the overbought region to the oversold region in a single day! If the price succeeds in staying below the distribution zone of 1.6050, it will eventually go to the accumulation zone of 1.6000. It may cause the trend to form a bearish confirmation pattern.
USDJPY: The USDJPY pair was not that affected by the corrections that happened on Thursday. What could have caused a noteworthy pullback would be an exponential weakness in USD. But both USD and JPY are strong right now. As it is stated in the last Daily Trading Forecast, the indicators on the chart support a bullish scenario; this is still valid.
EURJPY: The EURJPY cross yielded to gravity and plunged by over 110 pips. This was very much supported by the Williams’ % Range that dropped from its overbought region to the oversold region (just as it was done on the GBPUSD pair). The price is now trading below the supply zone at 107.00, and if it continues trading lower and lower, the present bullish scenario will be rendered invalid.
