EURUSD Forecast:
The EURUSD attempted to push lower yesterday, bottomed at 1.4514 but further bearish pressure was rejected as the pair whipsawed to the upside, topped at 1.4651 and closed at 1.4627. The bias is bullish in nearest term targeting 1.4719 area but I think the situation here could be very tricky. On my h4 below I see a rising wedge formation indicating a potential warning of bearish reversal (correction). The price is now around the upper line of the bullish channel, so a downside correction is actually logic at this phase. However short positions is not recommended.
At the time I wrote this comment, the pair is traded around 1.4630 area, about 60 pips higher from my nearest support around 1.4570 area, which in my opinion is the best level to place a buy position with a very tight stop loss below the rising wedge lower line because if the rising wedge violated to the downside, the next downside correction target would be 1.4446 area. I don’t like my risk-reward ratio from here. I know the current strong bullish momentum is really tempting, but knowing the direction is never enough in forex trading. We need to be patient and consistent with our money management planning.
GBPUSD Forecast:
The hanging man formation gave us a valid warning of a bearish correction yesterday. The pair bottomed at 1.6520 and closed at 1.6576. On h4 chart below we can see that the bearish momentum can not really made a violation to the bullish channel yet as the price still struggling around the bullish channel lower line. The bullish scenario remains intact and I still prefer an upside scenario, but I think it’s better to keep out from the market now. Immediate resistance at 1.6655 area. Break above that area should trigger further bullish momentum re-testing 1.6740 area. Initial support at 1.6500. Valid break below that area should be seen as potential bullish failure.
USDJPY Forecast:
The USDJPY was corrected higher yesterday, topped at 91.12 and closed at 90.87. I am not surprised as the hammer formation I showed you yesterday gave us a valid bullish rebound warning. We might have another bullish correction today, testing 91.15 and 91.80 resistance area. Only a clear break above 91.80 should be seen as potential threat to the current bearish outlook. Immediate support at 90.70 – 90.20 area. I still prefer a bearish scenario but I think it’s better to stay out for now.
USDCHF Forecast
The USDCHF attempted to push higher yesterday, topped at 1.0422 but further bullish correction was limited as the pair closed lower at 1.0336. On daily chart below, we have another inverted hammer so bullish correction warning is still there. I still prefer a bearish scenario but I think it’s better to stay out at this phase. Yes, the current bearish momentum is strong and tempting but I will never ignore any correction/reversal warning. Immediate support at 1.0300 – 1.0250. Initial resistance at 1.0422 (yesterday’s high) followed by 1.0527.
EURJPY Forecast
The failed to continued it’s bearish momentum yesterday. The pair failed to move below 131.00 area, topped at 133.05 and closed at 132.94. On h4 chart below we can see that the pair is technically a mess as after break below the bullish channel (blue) and go inside the bearish channel (red) the pair is now back outside the bearish channel, which is for me a no trading zone, although the bias is bullish in nearest term testing 134.36. Immediate resistance is seen at 133.20 area. Consistent move above that area should trigger further bullish momentum towards 134.36. Initial support at 132.00 area.
GBPJPY Forecast
The GBPJPY bearish momentum was paused yesterday. The pair attempted to push lower, bottomed at 149.88 but whipsawed to the upside and closed higher at 150.62. The bias is bullish in nearest term testing 152.30 area but I still prefer a bearish scenario, so I will stay out for now. Immediate support at 150.80 area. Break below that area should trigger further bearish momentum re-testing 149.88 area (yesterday’s low).
AUDUSD Forecast
The AUDUSD made indecisive movement yesterday, formed a Doji on daily chart. On h1 chart below we can see that the pair actually still trapped in range area of 0.8674 – 0.8570 area (0% – 23.6% Fibo retracement of 0.8239 – 0.8674) indicating consolidation but still in bullish context. I still prefer a bullish scenario but I think it’s better to stay out for now. The best place to put a long position is still around 0.8500 area with a tight stop loss. CCI just cross the 100 line down on h1 chart suggesting potential downside pressure.
