The RSI on both the daily and weekly chart is just shy of entering the over-bought region. However, there does appear to be a bearish cross forming on the daily and weekly Stochastic (slow), suggesting an impending downturn may be developing. Waiting for the swing and then entering short may be a wise move over the coming days.
GBP/USD
This pair is once more testing the 1.6220 price level and meeting strong resistance. There appears to have been a recent bearish cross on the weekly Stochastic (slow) and the oscillator is now moving in a downward direction. Going short on this pair appears to be preferable today.
USD/JPY
Following last week's intense volatility in this pair, most indicators look to be leveling off in neutral territory. Not many indications are being signaled by the mid- and long-term charts. Waiting for a clearer signal may be a wise decision as a result.
USD/CHF
There seems to be a recent bullish cross on the weekly Stochastic (slow), highlighting a growing level of upward pressure on this pair. There does not seem to be much corroborating information to support this move, however. As a result, it appears keeping with the current downtrend and going short looks more probable over the coming week.
The Wild Card
Silver
Silver prices have been bouncing against the $36 an ounce price level for the past several days and failing to breach. With the US dollar in decline since Wednesday, commodity prices may find additional support this week. However, a few indicators on Silver's long-term charts suggest that it could see another bounce off the $36 price level. If this commodity fails to breach that line once again, forex traders may be able to make lucrative profits with a short entry position near that price.
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