EUR/USD Daily Forecast

Wednesday, July 21, 2010

The EURUSD was volatile but showed unclear direction yesterday. On h1 chart below we can see price is forming a broadening formation where price makes new highs and lows without clear direction. The upside scenario remains intact but the appearance of the broadening formation activates my wait and see mode. Note that price also reject to move consistently above 1.3000 since Friday, which may indicate potential bullish exhaustion. Immediate resistance at 1.2920 area. Consistent move above that area could trigger further upside pressure towards 1.3000 region again before testing 1.3120. Initial support at 1.2750.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY still trapped in range area of 113.50 - 110.85 in a volatile but unclear movement. I think I will keep stand aside for now and need a break on either side to see clearer direction. 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. Aggressive traders may short around 113.50 or long around 110.85 with tight stop loss.

GBPJPY Daily Forecast

The GBPJPY had a bullish momentum yesterday, topped at 133.74 and closed at 133.52. The bias is bullish in nearest term testing 134.50 area. However, we have a broadening formation inside the range area (0f 136.30 - 130.50) which is actually confirm unclear direction and should keep us out from the market for now.

AUDUSD Forecast

The AUDUSD had a bullish momentum yesterday and now seems ready to test 0.8858 key resistance area. Consistent move above that area confirms the bullish continuation scenario at least testing 0.8980 - 0.9000 area. Immediate support at 0.8790. Break below that area could lead us into neutral zone in nearest term testing 0.8730 but the main scenario remains to the upside.

GBP/USD Daily Forecast

The GBPUSD attempted to push lower yesterday, bottomed at 1.5153 but closed higher at 1.5260. This fact keeps the bullish outlook intact testing 1.5350 in nearest term but need a clear break above 1.5470 to confirm bullish continuation scenario in longer term. On the downside, the lower line of the bullish channel and 1.5150 area is the key support area. A break below that area could be a serious threat to the bullish outlook.

USD/CHF Daily Forecast

The USDCHF attempted to push lower yesterday, bottomed at 1.0452 but closed higher at 1.0524. On h1 chart below we can see price is moving inside a new minor bullish channel indicating upside correction phase but the major bearish scenario remains intact as long as price move inside the major bearish channel. Immediate resistance at 1.0630. Consistent move above that area and violation to the major bearish channel could be a serious threat to the bearish scenario testing 1.0750. On the downside we need a break below 1.0399 to continue the bearish scenario testing 1.0220.