Finally, we have significant technical break on EURUSD. As you can see on my daily chart below, price break above the peak at 1.5062, topped at 1.5143 and closed at 1.5136. If you remember my technical study on November 12, I said about two double top scenarios: valid or failure scenario. When a chart formation fails, I believe the opposite scenario is in play. If the bearish reversal scenario fails, the bullish continuation is in play. So, whether a chart formation fails or valid, I always have a clue. Isn’t that great? I am in buy mode now, targeting 1.5300 area. We have an important resistance around 1.5150 area and need consistent move above that area before aim for 1.5300. Immediate support at 1.5090 followed by 1.5062. As long as price able to stay above 1.5062, the bullish scenario should remains intact. CCI in overbought area and heading down on h4 chart, so watch out for potential minor downside pullback.
GBPUSD Forecast:
The GBPUSD had a significant bullish momentum yesterday, break above my key resistance 1.6692, topped at 1.6744 and closed at 1.6698. This fact should be seen as bearish scenario failure and potential bullish scenario targeting 1.6842 area. CCI in overbought area and heading down on h4 chart so watch out for potential minor downside pullback testing immediate support at 1.6670 area. Break below that area should lead us into no trading zone testing 1.6600 area and direction would become unclear for me.
USDJPY Forecast:
As I had expected, the USDJPY continued its bearish momentum yesterday, bottomed at 87.20 and closed at 87.32. On h4 chart below we can see how a breakdown below range area at 88.80 gave us a good bearish signal. The bias is bearish in nearest term targeting 86.10 area. However CCI in oversold area and heading up on h4 chart so watch out for potential minor upside pullback testing 87.50 resistance area. Break above that area should trigger further upside correction testing 88.00 area, but long position is not recommended at this phase.
