EUR/USD Daily Forecast

Monday, July 26, 2010

The EURUSD was indecisive on Friday. Price attempted to push lower, bottomed at 1.2794 but closed higher at 1.2914. On h4 chart below we can see that price is moving inside a triangle formation after failed to consistently move above 1.3000 and found support around 1.2735 indicating consolidation. Breakout above the triangle could trigger further upside pressure re-testing 1.3000 before targeting 1.3120. On the other hand, breakdown below the triangle could trigger further bearish pressure testing 1.2735 region. Overall we are still in bullish phase.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY continued its upside pressure on Friday. On daily chart below we can see price is now testing 113.50 key resistance which is the upper line of my range area. A consistent move above that area could trigger further upside pressure targeting 115.50 before testing 117.00. Immediate support at 112.50. Break below that area could trigger further downside pressure and lead us back into range and no trading zone.

GBPJPY Daily Forecast

The GBPJPY had a significant bullish momentum on Friday after breakout above my minor trendline resistance as you can see on my h4 chart below. The bias is bullish in nearest term testing 136.30 but note that overall we are still consolidating between 136.30 - 130.50. We need a clear break above 136.30 to take us into a new bullish phase at least testing 139.38 area. Immediate support at 134.50/00 region.

AUDUSD Forecast

The AUDUSD had a limited bullish momentum on Friday. The bias is neutral in nearest term but overall we are still in strong bullish phase targeting 0.9076. The tricky thing is that we have a rising wedge formation which is a bearish formation especially if price break below the formation and 0.8858 support area.

GBP/USD Daily Forecast

The GBPUSD continue its bullish momentum on Friday, topped at 1.5448 and closed at 1.5420. The bias is bullish in nearest term especially if price able to move consistently above 1.5470 area targeting 1.5573 (February 23 high) before testing 1.5685 region (February 18 high). Immediate support at 1.5400 - 1.5380. Break below that area could lead us into no trading zone in nearest term testing 1.5280/50 support area.

USD/JPY Daily Forecast

The USDJPY had a significant bullish pullback on Friday, break above the minor bearish channel indicating potential further upside pullback in nearest term testing 88.23. Consistent move above that area could trigger further upside recovery testing 89.10. On the downside, immediate support at 87.00. Break below that area could trigger further bearish pressure testing 85.86 area. Overall we are still in major bearish scenario.

USD/CHF Daily Forecast

The USDCHF had a bullish momentum on Friday, topped at 1.0562 and closed at 1.0534. The bearish pressure seems to losing some momentum as price is ready to test the major bearish channel. Violation to the bearish channel could be a serious treat to the major bearish outlook. Immediate resistance at 1.0650/70. Break above that area could trigger further upside pressure testing 1.0750. Initial support at 1.0399. Break below that area should keep the major bearish scenario intact testing 1.0320 and 1.0220 region.