The EURUSD had a significant bearish momentum yesterday, bottomed at 1.4844 and closed at 1.4863. The CCI bearish divergence I showed you on Saturday give us a valid signal about bullish exhaustion and bearish momentum. On h4 chart below we can see that price violated the bullish channel to the downside indicating potential bearish view.
On my daily chart below we can see that we are in critical phase where price now testing my key support level 1.4850. Break below that area could trigger further bearish momentum towards 1.4450 in medium term outlook. The bias is bearish in nearest term but we need a consistent move below 1.4850 to confirm further bearish correction scenario at least towards 1.4700 area. Immediate resistance at 1.4920/50 area. Break above that area should keep the medium term bullish outlook intact but become unclear in nearest term.
GBPUSD Forecast:
The GBPUSD made indecisive movement yesterday, made a Doji on daily chart. My technical strategy yesterday, about to place a short position around the upper line of the bearish channel worked fine, as you can see on daily chart below, that area is a good resistance area and that area remains a good place to keep short with tight stop loss above it. I still prefer a bearish scenario at this phase, with medium term technical target at 1.5800 area. Immediate resistance at 1.6394 (yesterday’s high) and around the upper line of the bearish channel. Break above the bearish channel should lead us into no trading zone as price might start to regain it’s bullish momentum once again, and nearest bias would become unclear for me. The bias remains bearish in nearest term and still targeting 1.6113 area.
USDJPY Forecast:
The USDJPY attempted to push lower yesterday but failed to move below my key support level 91.40 and closed higher at 92.23 indicating bullish momentum is still there. However, like I said yesterday, I will keep stay out for now as 92.50 area remains potential strong resistance. Only valid break above that area could lead us to further bullish scenario. Key support level also remains at 91.40. Break below that area should trigger further bearish momentum back towards 90.50 area. CCI in overbought area and heading down on daily chart suggesting potential bullish exhaustion.
USDCHF Forecast
Finally, my trendline resistance was convincingly violated to the upside and price now traded above 1.0166 resistance area (now become support) indicating serious threat to the current bearish outlook and potential bullish reversal scenario. The bias is bullish in nearest term targeting 1.0280 area. Immediate support at 1.0166 – 1.0120 area. Break below that area should lead us into no trading zone and price might regain it’s bearish momentum once again re-testing 1.0040 area.
EURJPY Forecast
My concern about EURJPY is in transition and we need to wait for further development proved to be right. On daily chart below we can see that price failed to break the upper line of rectangle area at 138.68 and had a bearish momentum. I see interesting relation between the upper line of the rectangle area with the CCI, as you can see in my daily chart below. Every time price failed to break above the rectangle and CCI in overbought area, we had a significant bearish momentum towards the lower line. Now I am expecting the same thing, a bearish momentum at least targeting 136.26 area in nearest term. Only valid break above 138.68 area should lead us into new phase of the bullish scenario. Immediate resistance at 137.70 area. Break above that area should trigger further bullish momentum re-testing 138.68.
GBPJPY Forecast
The GBPJPY had indecisive movement yesterday. The pair attempted to push lower but failed to break convincingly below my support at 149.40 so far. I think we are in no trading zone but I am expecting another downside pressure re-testing 149.40 before aim for 147.03 area. Immediate resistance at 151.16 (yesterday’s high). Break above that area should trigger further upside pressure re-testing 153.20.
AUDUSD Forecast
The AUDUSD continued it’s moderate bearish momentum yesterday. For me, the fact that price able to move away from the bullish channel indicating potential downside pressure testing 0.9090 area but overall we still in range area of 0.9270 – 0.9090 area. Immediate resistance at 0.9180 – 0.9200 area. Break above that area should trigger further bullish momentum re-testing 0.9270.
