by: Setyo Wibowo
EURUSD Forecast: Sideways, Waiting for ECB and NFP
The EURUSD bullish momentum was paused yesterday as market consolidated in a sideways movement, as you can see on h1 chart below. While technically this consolidation is normal after significant bullish momentum on Friday and Monday and another upside breakout is expected to continue bullish scenario toward 1.4500 and 1.4719, it seems investors were hesitating and waiting for key fundamental events this week before taking the next steps. Beside NFP on Friday, we have ECB rate decision on Thursday which expected to keep the rate at 1%.
Technically speaking, although we might not see big movement as market might still consolidating and wait for ECB rate and NFP, if we have a breakout to the upside from the sideways area today, there should be further upside momentum and 1.4500 is still a reasonable nearest target. As long as the pair stay above 1.4336 technical outlook remains bullish.
GBPUSD Forecast:
The GBPUSD made indecisive movement yesterday, formed a Doji formation on daily chart. On h4 chart below we can see that after had significant bullish momentum on Friday and Monday, the pair was consolidated in a range bound area. I think this consolidation is normal and my view to this pair remains bullish with 1.7100 as potential target. However, CCI just cross the 100 line down on h4 chart so watch out for potential further downside consolidation testing 1.6840 support area.
On fundamental side, beside BoE rate decision tomorrow, we have UK Manufacturing Production and Services PMI today which expected to have positive result. If we have a positive results, the technical bullish view should be supported and we should see further bullish momentum. However if the result is disappointing, we should see further downside correction.
USDJPY Forecast:
The USDJPY made indecisive movement yesterday, formed a Doji formation on daily chart. On h4 chart below we can see that the pair attempted to push lower, break below trendline support but further bearish scenario was rejected as the pair whipsawed to the upside, closed above the trendline support. Looks like the trendline still did a good job, so further upside correction scenario is still intact. Although I am expecting further upside pressure, the trendline resistance should be a strong resistance so bullish momentum might be very limited in this phase. Immediate resistance is seen at 95.90. Initial support at 94.35 (yesterday’s low).
USDCHF Forecast
The USDCHF bearish momentum was paused yesterday. On h4 chart below we can see that the pair is moving in sideways area indicating consolidation after significant bearish momentum. I think this is normal and I am expecting bearish continuation soon. The bias is neutral in nearest term but consistent movement below 1.0589 should trigger further bearish momentum with 1.0364 remains as potential downside medium target. Immediate resistance remains at 1.0670. Break above that area could trigger further upside correction towards 1.0750.
EURJPY Forecast
The EURJPY had indecisive movement yesterday as bullish momentum was paused indicating consolidation. On h4 chart below we can see that the pair attempted to push lower, but support area around 136.08 still hold so far and closed higher at 137.10. The bias is neutral in nearest term but bullish medium term outlook remains intact. I am expecting range trading area of 136.08 – 138.39 today.
GBPJPY Forecast
The GBPJPY made indecisive movement yesterday, formed a Doji formation on daily chart. On h4 chart below we can see that the pair has been moving in sideways area after significant bullish momentum indicating consolidation. Although we may have potential range bound market of 159.30 – 162.57 I still prefer upside scenario. However, unless we have clear break above 162.57, bullish scenario might be very limited at this phase. Immediate support at 160.00. Break below that area should trigger further bearish correction testing 159.30.
AUDUSD Forecast
The AUDUSD bullish momentum was paused yesterday. After significant bullish momentum since breakout above 0.8261 signaling bullish continuation, the pair seems to consolidating now, moving in sideways area as you can see on h1 chart below. The bias is neutral in nearest term and we might have further consolidation and lower correction but I still prefer a bullish scenario with 0.8500 as potential nearest target before headed for 0.8700. Immediate support at 0.8350.
Labels: Forex Analysis, Forex Indicator, forex signal, Forex Trend, Market Analysis, Market Trend, money trading, Moving Average
