EURUSD Forecast:
The EURUSD didn’t make significant movement yesterday. Overall price still consolidation in range area of 1.3450/35 – 1.3735/50. The bias remains neutral both in nearest and medium term but the long term outlook remains bearish. For me, there are two technical events that must take place in this situation to give us clearer direction, a break above the major bearish channel confirming bullish reversal scenario towards 1.4025/50 or a break below the triple bottom around 1.3450/30 area to confirm bullish failure and continue the major bearish scenario towards 1.3100. Immediate support at 1.3530. Break below that area could trigger further bearish pressure re-testing 1.3450/35 area. On the other hand, break above 1.3735/50 area should be seen as a serious threat to the major bearish scenario at least targeting 1.3850 region.
GBPUSD Forecast:
The GBPUSD had a volatile movement yesterday. Price attempted to push lower, bottomed at 1.4873 but whipsawed to the upside and closed higher at 1.4975. While this fact may seem a little bit confusing if we look at shorter time frames, actually as you can see on my daily chart below, it was clear that price bounced back to the upside after found support at the major trendline support, which is the key support area at this phase. The main trend remains bearish but we need a clear break below the trendline support to continue the bearish scenario testing 1.4500 area. The bias is neutral in nearest term. Immediate resistance at 1.5000/50 area. Break above that area could trigger further upside correction towards 1.5200/50 region. Initial support at 1.4930 followed by 1.4873. Break below 1.4873 should continue the bearish pressure re-testing 1.4779 area.
USDJPY Forecast:
The USDJPY attempted to push higher yesterday, slipped above 90.50, topped at 90.82 but still unable to move consistently above 90.50 so far. This fact could produce another false breakout scenario which could trigger a bearish momentum testing 89.50 area. The bias is neutral in nearest term but we are still in a major bearish outlook. The bullish correction scenario with technical target around 91.50 remains intact but we need a consistent move above 90.50 to continue the bullish momentum.
USDCHF Forecast
Boring, boring, boring. The USDCHF made another insignificant movement yesterday. As you can see on my weekly chart below, we have 5 Dojis so far indicating more than a month of indecisive movement as price still trapped in range area of 1.0888 – 1.0640. Well, always a look at the bright side that this situation is a perfect condition to learn to be patient and to see that doing nothing can be the best thing to do. My technical strategy remains to short around 1.0888 or long around 1.0640 with tight stop loss. Break above 1.0888 – 1.0900 area should continue the bullish scenario targeting 1.1000 while a break below 1.0640 should trigger further bearish correction towards 1.0507 area.
EURJPY Forecast
The EURJPY had a significant bullish momentum yesterday, slipped above the trendline resistance, but still unable to stay consistently above it. After bullish momentum triggered by the double bottom formation around 119.70 area, price is now facing a double top formation around 123.99 area. A failure to break above that area and break below 123.00 area should be seen as potential bearish scenario re-testing 121.70 area today. On the other hand, break above 123.99 area should be seen as double top bearish scenario failure thus trigger further bullish momentum at least targeting 125.15 and start a new bullish phase.
GBPJPY Forecast
The GBPJPY was volatile but indecisive yesterday. Price attempted to push lower, bottomed at 133.91 but whipsawed to the upside and closed higher at 135.55. On h4 chart below we can see that price re-testing the major trendline resistance again. As long as the trendline hold, the main trend should remain bearish. On the other hand, break above the trendline resistance should be seen as a potential threat to the current bearish scenario and could be a beginning of a new bullish phase at least testing 138.30 area. Immediate support at 134.80 area. Break below that area should trigger further bearish momentum re-testing 133.91 and keep the bearish scenario intact.
AUDUSD Forecast
The AUDUSD attempted to push higher yesterday, topped at 0.9192 but closed lower at 0.9152 and keep moving lower below 0.9140 at the time I wrote this comment. The bullish scenario remains intact but the failure to keep momentum above 0.9140 could produce a false breakout scenario which could trigger a bearish correction re-testing 0.9040 area. Immediate resistance at 0.9192 (yesterday’s high) followed by 0.9250.
