EURUSD Forecast:
The EURUSD failed to continued its bullish correction yesterday, bottomed at 1.3552 and closed at 1.3580. While technically this fact can be seen as potential false breakout scenario thus trigger significant bearish pressure re-testing 1.3450/30 key support area, the Euro was fell after a big surprise in US pending home sales data which fell to -7.6% indicating that risk aversion has taken center stage again. If this is true, a bad result of NFP today could trigger further weakness for the Euro while a good result could give some support. The bias is bearish in nearest term but as long as price still able to move above 1.3450 area, we are actually still in consolidation phase and need a clear break below 1.3450/35 area to continue further bearish scenario targeting 1.3100 area. Immediate resistance at 1.3625. Break above that area should lead us into no trading zone as direction would become unclear.
GBPUSD Forecast:
The GBPUSD attempted to push higher yesterday, topped at 1.5135 but whipsawed to the downside, bottomed at 1.5004 and closed at 1.5030. On h4 chart below we can see that price failed to break above the upper line of the bearish channel indicating that the bearish scenario remains intact. Technically this fact could be seen as potential end to the bullish correction scenario especially if price able to move consistently below 1.5000 – 1.4950 area targeting 1.4779 even 1.4500 area in longer term. The bias is bearish in nearest term. Immediate resistance at 1.5080 area. Break above that area should keep the bullish correction scenario intact but will be a no trading zone for me as direction would become unclear. Eyes on US NFP today. The Dollar rallied yesterday after worse than expected US pending home sales indicating that risk aversion has taken the center stage. If this is true, a bad result of NFP today could trigger further weakness for the Sterling while a good result could give some support.
USDJPY Forecast:
The USDJPY failed to continue its bearish momentum yesterday, topped at 89.24 and closed at 89.02. This fact can be seen as a false breakdown below 88.50 area which potentially produce significant upside momentum testing 89.50 even 90.50 area. The bias is bullish in nearest term. Another move below 88.50 area should trigger further bearish momentum testing 87.35 region.
USDCHF Forecast
The USDCHF failed to continue it’s bearish correction yesterday, topped at 1.0794 and closed at 1.0769. The bias is bullish in nearest term but I think overall price still consolidation and only a clear break above 1.0888 – 1.0900 area could continue the bullish scenario targeting 1.1000 and put the bearish correction phase to its end. Immediate support at 1.0720 area. Break below that area should keep the bearish correction scenario intact testing 1.0640 and 1.0507 area.
EURJPY Forecast
The EURJPY made another indecisive movement yesterday. The bias is neutral in nearest term. On h4 chart below we can see that so far trapped in range area of 121.70 – 119.70. I think the best strategy is to short around 121.70 or to long around 119.70 with tight stop loss. In longer term view, the bearish scenario remains intact.
GBPJPY Forecast
The GBPJPY also indecisive yesterday. The bias is neutral in nearest term. On h4 chart below we can see that price so far trapped in range area of 134.70 – 132.00 this week and I think the best strategy is to short around 134.70 or long around 132.00 with a tight stop loss. In longer term perspective, the trend remains bearish.
AUDUSD Forecast
The AUDUSD failed to keep its bullish momentum yesterday and now traded below 0.9040 area indicating potential false breakout scenario which could lead to a significant bearish momentum targeting 0.8910 and the trendline support area (red). The bias is bearish in nearest term but remains unclear in medium term as price seems to be in consolidation phase. Immediate resistance at 0.9040. Break above that area should keep the bullish scenario intact targeting 0.9140.
