EURUSD Forecast:
The EURUSD had a significant recovery yesterday, topped at 1.2596 but closed lower at 1.2487, still in a high volatile market. The Dollar rally was stopped by bad data in the last two days. The SNB intervention buying the Euro and rumor about the ECB intervention also responsible to this bullish sentiment although we have no substantial progress on the Euro zone debt crisis. Regardless of how we see the fundamental situation and rumors in the market, technically this fact could open the door for further upside recovery testing the major trendline support. The bias is bullish in nearest term targeting 1.2630 area even 1.2700 region but I still believe that the main scenario remains to the downside. Immediate support at 1.2400. Break below that area could wane the upside recovery.
GBPUSD Forecast:
The GBPUSD attempted to push lower yesterday, bottomed at 1.4231 but closed higher at 1.4352. On h4 chart below we can see that once again, the minor trendline resistance did a good job preventing further upside recovery. Will this trendline able to do it again today? It’s hard to tell but the Euro recovery also lead Sterling higher against the Dollar. The main scenario remains bearish but we need a consistent move below 1.4240 area to continue the bearish scenario at least testing 1.4000 psychological level. If the minor trendline resistance is violated to the upside, we may see further technical upside recovery testing 1.4600 region.
USDJPY Forecast:
The USDJPY had a significant movement yesterday. On h1 chart below we can see price had a bearish momentum after breakdown below the major trendline support, bottomed at 89.00 but traded higher around 89.90 at the time I wrote this comment. This fact confirms the bearish scenario at least targeting 88.23 region. However price already in oversold area so watch out for potential upside correction testing 90.50/80 region. Another movement back above the major trendline support should lead us into no trading zone as direction would become unclear.
USDCHF Forecast
The USDCHF made another indecisive movement yesterday, formed a Doji on daily chart. On h1 chart below we can see that price still trapped in range area of 1.1595 – 1.1445 and need a break on either side to see clearer direction. Break above 1.1595 could trigger further bullish momentum testing 1.1650 area while a break below 1.1445 could trigger further bearish correction testing 1.1400 – 1.1380 area.
EURJPY Forecast
The EURJPY attempted to push lower yesterday, bottomed at 109.53 but whipsawed to the upside and traded around 112.78 at the time I wrote this comment. 110 – 109 area seems to be the nearest term bottom so far. On h4 chart below we can see price still move inside the bearish channel but price is now testing the upper line of the bearish channel. Looks like the intervention threat able to create fears to the sellers because price tend to rebound significantly higher after touch a new low as traders are protecting their profit due to intervention rumor. A violation to the bearish channel could trigger further upside recovery testing 114.80 area. Immediate support at 111.01 (current low).
GBPJPY Forecast
The GBPJPY attempted to push lower yesterday, bottomed at 126.75 but whipsawed to the upside, traded higher around 129.34 at the time I wrote this comment. Price is now testing the bearish channel. As long as the bearish channel hold, the bearish scenario remains intact in nearest term but if it is violated to the upside further upside recovery testing 132.79 (yesterday’s high) can be expected. Immediate support at 127.71 (current low).
AUDUSD Forecast
The AUDUSD continued its bearish momentum, bottomed at 0.8070 earlier today in Asian market but whipsawed higher testing 0.8250 area at the time I wrote this comment in high volatile market. Another pullback above 0.8250 area could trigger further upside recovery but that would be a no trading zone for me. The pair has been moving down strongly this week without significant upside correction so weekend might be a good time for that as traders may take some profits. On the downside, potential bearish target around 0.8000 psychological level.
Labels: Forex Analysis, forex signal, Forex Trend
