EUR/USD Daily Forecast

Tuesday, July 20, 2010

The EURUSD didn't make significant movement yesterday. The bullish momentum so far unable to make a break above 1.3000 resistance area but the bullish phase remains intact. The bias remains neutral in nearest term. As you can see on my h4 chart below we have a flag formation indicating potential bullish scenario especially if price break above the flag and 1.3000 area targeting 1.3120. Immediate support at 1.2900. Consistent move below that area could trigger further bearish pressure testing 1.2750 region.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY was volatile but indecisive yesterday. I have made adjustment to my bullish channel following newest development. Price seems to be trapped in range area of 113.50 - 110.85 and need a break on either side to see clearer direction but the bullish correction scenario remains intact. Break above 113.50 could trigger further bullish pressure testing 115.50 area while break below 110.85 could end the bullish correction at least testing 109.00 region. I think I will stand aside from this pair from now and see further development.

GBPJPY Daily Forecast

The GBPJPY was volatile but indecisive yesterday and still trapped in the range area 136.30 - 130.50. This volatile yet unclear movement is something that should watch, but not trade. I will keep stay away from this pair. Aggressive traders may long around 130.50 or short around 136.30 with tight stop loss.

AUDUSD Forecast

The AUDUSD was indecisive yesterday but had a bullish momentum earlier today in Asian session, hit 0.8775. The bias is bullish in nearest term testing 0.8858 but we need a consistent move above the ascending triangle and 0.8858 to continue the major bullish outlook. Note that as long as price stay below 0.8858 we still have potential downside consolidation inside the circled area. Immediate support at 0.8665 (current low).

GBP/USD Daily Forecast

The GBPUSD continued its bearish pressure yesterday, bottomed at 1.5202 and closed at 1.5227 after failed to move above 1.5470 but the bullish scenario remains intact as long as price move inside the bullish channel. On daily chart below we can see that price seems ready to test the lower line of the bullish channel and 1.5150 key support area. Break below that area could be a serious threat to the bullish outlook testing 1.5050 - 1.5000. On the upside, we need a consistent move above 1.5350 to continue the bullish scenario.

USD/JPY Daily Forecast

The USDJPY slipped above 87.00 yesterday but closed lower at 86.69 and now struggling around 87.00. The bias remains neutral in nearest term but the main scenario remains bearish. Immediate resistance at 87.20 (yesterday's high). Consistent move above that area could trigger further upside pressure testing 88.00. On the downside, 85.86 area remains potential nearest bearish target before testing 84.82.

USD/CHF Daily Forecast

The USDCHF continued its bullish correction yesterday. Price seems ready to the bearish channel but as long as the channel hold the main scenario remains to the downside. Immediate resistance at 1.0675. Break above that area could be a serious threat to the bearish outlook. Initial support at 1.0480. Break below that area could trigger further downside pressure re-testing 1.0400.