The EURUSD continue it’s bullish momentum yesterday, topped at 1.4874 and closed at 1.4851. As you might already know, 1.4850 – 1.4950 area is a very important area for me since I believe any reactions around that area determine whether we will continue the bullish at least towards 1.5300 even 1.6000 area or a bearish reversal back towards 1.4000 area.
So far, the facts show us that the bullish scenario is in control so I prefer a bullish scenario. On h1 chart below we have a valid bullish channel (blue channel) started from October 02 indicating bullish power has been dominating the movement. The bias is bullish in nearest term targeting 1.4950 area but we need consistent move above 1.4850.
My key support level for today is 1.4800. I will be watching any reactions around that support area before make any decisions. As long as that area hold, I think the bullish should continue. However, break below that support area should lead us into no trading zone but short position is not recommended at this phase.
GBPUSD Forecast:
The GBPUSD failed to continue it’s bearish scenario yesterday. On h4 chart below we can see that after failed to stay consistently below 1.5760, price whipsawed to the upside and slipped above the minor trendline resistance (blue), a serious threat to my bearish outlook. Although it’s too early for a bullish reversal scenario, the bias is bullish in nearest term testing 1.6000/50 area. Break above that area and violation to the major trendline resistance (red) could trigger further bullish momentum. While broad Dollar weakness continues, violation of the major trendline resistance could be a potential starting point for a bullish reversal scenario. Immediate support at 1.5880/50 area. Break below that area should keep the bearish scenario intact re-testing 1.5707.
USDJPY Forecast:
The USDJPY made another indecisive movement yesterday, formed a Doji on daily chart. On my h4 chart below we can see that the pair still able to stay above 89.60/30 area. For me this fact indicating that the bullish correction scenario remains intact. We also have a “flag” formation, which is technically a bullish formation especially if we have a breakout above the “flag” targeting 91.50 area. However, a valid break below 89.60/30 area should be seen as potential threat to the bullish correction scenario.
USDCHF Forecast
The USDCHF continued it’s bearish momentum yesterday. On h4 chart below we can see that the price has been able to move below the 1.0235 area so far. The bias remains bearish at least targeting 1.0166 before aim for 1.0000 psychological level. Break above 1.0235 should lead us into no trading zone but long position is not recommended.
EURJPY Forecast
The EURJPY continued it’s bullish momentum yesterday. I think we are in critical phase now as price seems ready to challenge my major trendline resistance. Break above the trendline should be seen as the end of the bearish outlook and a beginning of bullish scenario. The bias is bullish in nearest term. Immediate support at 132.50 area. Initial resistance at 133.87. Break above that area should trigger further bullish momentum towards 134.66.
GBPJPY Forecast
The GBPJPY had a bullish momentum yesterday. On h4 chart below we can see that the price now convincingly move above the trendline. Although the bullish pressure seems limited so far and price already made false trendline breakout it’s clear that bearish power has started to lose some momentum. My key level for today is 143.20 area. Break above that area should trigger further bullish momentum targeting 144.50 and put my bearish outlook to it’s end.
AUDUSD Forecast
The AUDUSD made indecisive movement yesterday. On h4 chart below we can see that the pair slipped above 0.9090, topped at 0.9124 but failed to stay consistently above 0.9090, traded around 0.9066 at the time I wrote this comment. For me this is a false breakout which potentially trigger some downside retracement towards 0.9000 area but short position is not recommended at this phase. I am expecting another breakout above 0.9090 targeting 0.9180 area.
