EUR/USD Daily Forecast

Thursday, July 22, 2010

The EURUSD had a significant bearish momentum, slipped below the minor trendline support, indicating potential bearish view in nearest term testing 1.2670 - 1.2600 region. However note that overall we are still in upside correction phase and only a movement below the major bullish channel and 1.2465 support area could be considered as potential bullish failure. I will keep stand aside for now. Immediate resistance at 1.2800. Consistent move above that area could trigger further upside pressure testing 1.2880 - 1.2900 area.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY had a significant bearish momentum, slipped below the bullish channel and 110.85 support area indicating potential bearish view not only targeting 119.15 in nearest term but potentially resume the major bearish scenario as upside correction may over now. Another movement above 110.85 could lead us into neutral zone as direction is unclear testing 111.50 area.

GBPJPY Daily Forecast

The GBPJPY had a significant bearish momentum yesterday, bottomed at 131.57 and closed at 131.96 and traded around 131.58 at the time I wrote this comment. The bias is bearish in nearest term testing 131.25 and 130.50 region but unless we have a break from the range area I will keep out from the market. Immediate resistance at 132.20/30. Consistent move above that area could trigger further upside pressure testing 133.00/10.

AUDUSD Forecast

The AUDUSD failed to break above 0.8858 yesterday. The bias is neutral in nearest term. The major scenario remains to the upside but again, we need a clear break above 0.8858 area to continue the bullish scenario testing 0.8980 - 0.9000. Below 0.8858, we still have potential volatility and downside consolidation inside the circled area. Immediate support at 0.8660/80 region.

GBP/USD Daily Forecast

The GBPUSD had a significant bearish momentum yesterday, bottomed at 1.5123 but fail to stay consistently above 1.5150 so far. The lower line of the bullish channel did a good job preventing further bearish attack which keep the bullish outlook intact but clearly the upside scenario is under serious attack now. Violation to the bullish channel could be seen as bullish failure testing 1.5050 - 1.5000 support area. Immediate resistance at 1.5215 region. Consistent move above that area could trigger further upside pressure testing 1.5350 .

USD/JPY Daily Forecast

The USDJPY failed to continue its bullish correction yesterday and now back below 87.00. The bias is bearish in nearest term testing 85.86 before targeting 84.82 area in long term. On the upside, another movement above 87.00 could lead us into no trading zone in nearest term as direction is unclear testing 87.50 - 88.23 resistance area but overall the major scenario remains to the downside.

USD/CHF Daily Forecast

The USDCHF didn't make significant movement yesterday. The bias remains neutral but still within a major bearish scenario. Nearest support to be tested at 1.0399. Break below that area could trigger further bearish momentum targeting 1.0320 before testing 1.0220 region. On the upside, immediate resistance at 1.0600 region. Break above that area and violation to the major bearish channel could be a serious threat to the bearish outlook testing 1.0750 area.