EURUSD Forecast: Break above 1.5000, entering a new phase of bullish scenario
The EURUSD continued it’s bullish momentum yesterday, topped at 1.5045 and closed at 1.5007. The bullish power succeed to pass the test and move above critical area 1.4850 – 1.4950. I think we are now entering a new phase of a bullish scenario with 1.6000 area as potential long term technical target. A look at my daily chart below reveals my reason. On February 2008, after prevented further upside momentum by being a strong resistance area for a few months, 1.4950 level became a starting point of a new bullish phase which peaked at 1.6000 area on April 2008 once it broken to the upside.
Compared to current situation, the 1.4950 resistance level is much easier to break without significant downside correction, indicating the bullish momentum is much stronger than what happened on 2008.
The bias is bullish in nearest term targeting 1.5080 and 1.5140 area before aim for 1.5300. Key support level for today is 1.4950/60 area and the lower line of the bullish channel (see the h4 chart below). As long as the pair able to stay above that area, bullish momentum should remains strong. Break below that area should trigger further downside correction towards 1.4880/50 but short position is not recommended.
GBPUSD Forecast:
The GBPUSD violated my bearish channel yesterday, indicating nothing but the end of bearish scenario and the beginning of a bullish scenario with technical target at 1.6740 and 1.7042 area. CCI in overbought area and heading down on h4 chart so watch out for potential downside correction testing 1.6570/20 support area. Short position is not recommended.
USDJPY Forecast:
The USDJPY attempted to push higher yesterday, topped at 91.27 but closed lower at 90.99. On h4 chart below we can see that the lower line of the bullish channel still provided a good resistance. Another technical side that could be a support for a bearish scenario after violation of the bullish channel is that we have a double top formation, as you can see on my h4 chart below, indicating potential downside scenario. While we might still moving in range area of 90.10 – 91.50 today, but I am expecting a downside pressure than upside. Break below 90.10 should lead us into a bearish scenario confirmation.
USDCHF Forecast
The USDCHF continued it’s bearish momentum yesterday, bottomed at 1.0033 and closed at 1.0062. The bias remains bearish with 1.0000 as potential target. However, that area also could be a strong support area, so I think I will be very careful at this phase and keep an eye to any reactions around that support area. A break below that area should take us into a new phase of a bearish scenario. Immediate resistance at 1.0080 and 1.0166 area. Long position is not recommended.
EURJPY Forecast
The “Flag” bullish scenario worked perfectly yesterday. On h4 chart below we can see that after breakout from the “flag” area, we had a nice bullish momentum hit my first target 136.88, topped at 136.95 and closed at 136.57. The bias remains bullish targeting 138.67. CCI in overbought area and heading down on h4 chart so watch out for potential downside rebound testing 136.20 area. Break below that area could trigger further downside correction but short position is not recommended at this phase.
GBPJPY Forecast
My breakout strategy worked perfectly yesterday. As you can see on my h4 chart below, after breakout above 149.40, we had a nice bullish momentum, hit my first long target at 150.35, topped at 151.53 and closed at 150.96. The bias remains bullish targeting 153.20 area. CCI in overbought area and heading down on h4 chart so watch out for potential downside rebound testing 150.35 support area. Break below that area could trigger further downside correction towards 149.40 area but short position is not recommended at this phase.
AUDUSD Forecast
The AUDUSD made indecisive movement yesterday, indicating consolidation after some significant bullish. We still have valid bullish channel so the bullish mode still on with 0.9350 as nearest targeting before aim for 0.9500 area. The lower line of the bullish channel should provide immediate support. Violation to the downside should diminish the bullish view but short position still not recommended.
