The EURUSD failed to continue it’s bullish momentum yesterday. As you can see on my h4 chart, although the lower line of the bearish channel still provide a support and price not yet go back inside the bearish channel, the fact that the pair is in a weaker tone is clear. That’s why although not completely a mess (since the lower line of the bearish channel still provide support), I think my yesterday’s technical view maybe not the best way to look at current situation. Fortunately, my system did not produce any buy signal yesterday. I think I will stay out from the market for now.
Although it’s too early for a bearish reversal, I think it’s worth to take a look on bearish reversal warning showed by the rising wedge formation on daily chart below. The rejection to move above 1.4850 could be a starting point to the bearish reversal and potentially violate the lower line of the rising wedge, which could be a confirmation to the bearish reversal scenario in longer term.
The bias is bearish in nearest term testing 1.4440. Break below that area should trigger further bearish pressure towards 1.4330 area and could seriously damage the bullish outlook. Initial resistance at 1.4575 followed by 1.4650. Eyes on US NFP today. A worse than expected number could trigger negative sentiment to the global economy recovery and might bring risk aversion back into the market and give some support to the Greenback and could wane the optimism view in the market.
GBPUSD Forecast: Bearish Continues
The GBPUSD continued it’s bearish momentum yesterday. On h4 chart below we can see after rejected to move consistently above 1.6113 area, the pair continue to move lower and now traded below 1.6000 area indicating potential weakness for the Sterling. The minor trendline support (orange) has been violated to the downside suggesting a bearish view. The bias is bearish in nearest term testing 1.5850 and 1.5770 area. Initial resistance at 1.6000 area. Break above that area should lead us into no trading zone as my technical view would be a mess. Eyes on US NFP today. A worse than expected number could trigger negative sentiment to the global economy recovery and might bring risk aversion back into the market and give some support to the Greenback and could wane the optimism view in the market.
USDJPY Forecast:
My technical strategy worked perfectly yesterday. On h4 chart below we can see that price was moving lower after a rejection to move above the trendline resistance area. I am expecting further bearish continuation today. The bias is bearish in nearest term targeting 88.50 area. Immediate resistance at 89.80 area. Break above that area should lead us into no trading zone and testing 90.40 area but long position is not recommended.
USDCHF Forecast
The USDCHF had a moderate bullish momentum yesterday, topped at 1.0452 but closed lower at 1.0408. Although bullish momentum seems limited, the fact that we still have a valid bullish channel and price able to move above 1.0380 should indicate bullish view at least in nearest term targeting 1.0527 area. Break below 1.0380 sohuld lead us into no trading zone but as long as the bullish channel still valid, bullish correction is still intact.
EURJPY Forecast
The EURJPY had a significant bearish momentum yesterday, bottomed at 130.10 and closed at 130.24. Unfortunately, my trading plan was not executed because price was not near enough to the trendline resistance (orange). But that’s OK 
. The bias is bearish in nearest term targeting 127.00 area but I think we need a valid break below 129.79 support area to confirm my bearish continuation view. Immediate resistance at 130.60. Break above that area should lead to further bullish correction but long position is not recommended at this phase.
GBPJPY Forecast
The GBPJPY had a moderate bearish momentum yesterday, bottomed at 142.66 and closed at 142.76. Technically the situation could be very tricky at this phase since the pair now traded in a bearish tone but the bullish correction warning showed by the hammer can only be canceled by a movement below 139.71 which is also potential bearish target in nearest term. I will pay attention to immediate support at 141.90 area. A failure to move below that area should keep the bullish correction scenario alive and kicking and re-testing 144.50 area while a valid break below that area should trigger further bearish pressure towards 139.71.
AUDUSD Forecast
The AUDUSD failed to continue it’s bullish momentum yesterday, break below 0.8787 support area, bottomed at 0.8675 and closed at 0.8695. Fortunately, my system did not produce a buy signal yesterday. On daily chart below we can see that this was a case of a false breakout which usually lead to significant bearish momentum. The ias is bearish in nearest term targeting 0.8580 and 0.8500 area. Any movement above 0.8787 should lead us into no trading zone as direction would become unclear.
