EURUSD Forecast:
The EURUSD had a moderate bullish momentum yesterday, topped at 1.4294 but closed a little bit lower at 1.4259. On h4 chart below we can see that the rising wedge formation has been violated to the downside suggesting potential bearish scenario but further bearish scenario was limited by 1.4180 support area so far and overall the pair still consolidating. The bias is bullish in nearest term testing 1.4350 area, but remains neutral in medium term. Break above that area should trigger further bullish momentum towards 1.4446 and cancel the bearish scenario. However I prefer to stay out for now and wait for further development. Today we will have ECB rate decision and press conference, which I expect to be the market mover of the day. The ECB is expected to leave rates at 1.00%. The market will focus more on the conference where Trichet is going to give comments about the economy outlook.
GBPUSD Forecast:
The GBPUSD had a bullish momentum yesterday, topped at 1.6298 and closed at 1.6264. On daily chart below we can see that the pair is struggling around the trendline support (blue) and 23.6% Fibo retracement (of 1.3653 – 1.7042) around 1.6250 area. The price is now testing the upper line of the bearish channel (red channel). I still prefer a downside scenario but a break to the upside should be seen as bearish failure and might lead us into no trading zone. The bias is bullish in nearest term testing 1.6375 area but remains unclear in medium term. CCI just cross the -100 line up on daily chart suggesting potential upside pressure. Immediate support at 1.6110 area. Break below that area should trigger further bearish momentum towards 1.6000 psychological level. Today we will have Halifax HPI and Services PMI data which expected at 0.5% and 53.9. A worse than expected numbers should trigger bearish momentum while a better than expected numbers should be good for the Sterling.
USDJPY Forecast:
The USDJPY continued it’s bearish momentum yesterday, bottomed at 92.09 and closed at 92.23. On daily chart below we still have a valid bearish channel indicating bearish view. The bias remains bearish in nearest term but as you can see on daily chart below we seem to have a good support around 91.80 area which could be considered as a potential double bottom formation, giving a warning about potential upside rebound. However, a clear break below 91.80 should continue the bearish scenario towards 89.80 or even 87.10 area. Immediate resistance at 92.70 area. Break above that area should lead us into no trading zone.
USDCHF Forecast
The USDCHF had a moderate bearish momentum yesterday. On h1 chart below we can see that the pair still trapped in broadening formation area where price made new highs and lows without clear direction but we also still have the bearish trendline indicating the bearish scenario in longer term remains intact. I prefer to stay out for now and wait for further development. Immediate support is seen at 1.0580 followed by 1.0527 area. Initial resistance at 1.0650 followed by 1.0750. CCI just cross the -100 line up on h1 chart suggesting potential minor upside pressure.
EURJPY Forecast
The EURJPY continued it’s bearish momentum yesterday, bottomed at 131.01 and closed at 131.52. On h4 chart below we still have a valid big bearish channel indicating bearish scenario. The bias remains bearish in both nearest and medium term targeting 129.60. However, CCI about to cross the -100 line up on h4 chart so watch out for potential upside rebound testing 131.90 or even 132.80 resistance area. Break above that area should lead us into no trading zone.
GBPJPY Forecast
The GBPJPY made indecisive movement yesterday, formed a Doji on daily chart. On h4 chart below we still have a valid big bearish channel indicating bearish scenario targeting at least 147.13 area. The bias is neutral in nearest term but remains bearish in medium term. Immediate support at 149.02 area (yesterday’s low). Break below that area should trigger further bearish momentum targeting 147.13. Initial resistance at 150.90 area. Break above that area should lead us into no trading zone.
AUDUSD Forecast
The AUDUSD was corrected higher yesterday, topped at 0.8372 and closed at 0.8335. On h4 chart below we can see that the pair actually still trapped in a range area of 0.8477 – 0.8150 area. The bias is neutral in nearest term and I think we are in no trading zone now and it’s better to stay out from the market and wait for further development. Immediate support at 0.8261. Break below that area should trigger further bearish momentum testing 0.8150 area. Initial resistance at 0.8450/77 area. CCI in neutral area on both h4 and daily chart.
