EUR/USD Daily Forecast

Tuesday, July 27, 2010

The EURUSD touched 1.3000 area yesterday but still unable to move consistently above that psychological/key level so far. On h4 chart below we can see that we may have a triple top formation around 1.3000. Consistent move above 1.3000 could trigger further bullish pressure testing 1.3120 even higher. On the other hand, break below 1.2735 confirms the triple top scenario and could be a serious threat to the current bullish outlook. Immediate support at 1.2950 (23.6% Fibo retracement of 1.2793 - 1.3005). Break below that area could trigger further bearish pullback testing 1.2875 (61.5% Fibo retracement of 1.2793 - 1.3005).

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY was indecisive yesterday. Price so far unable to stay consistently above 113.50 area indicating limited upside pressure. Overall price still trapped in range area of 113.50 - 108.07. We need a consistent move above 113.50 to continue the bullish correction testing 115.50. Immediate support at 112.25 followed by 111.50/60 region.

GBPJPY Daily Forecast

The GBPJPY attempted to push higher yesterday, topped at 135.60 but closed lower at 134.64. Overall we are still in range area of 136.30 - 130.50 and I will keep stay away from this pair for now. On h1 chart below we have a descending triangle formation indicating potential downside pressure especially if price break below the triangle testing 133.70/20 support area. On the upside, we need a clear break above 136.30 resistance area to confirm the bullish scenario testing 139.38 region.

AUDUSD Forecast

The AUDUSD had a moderate bullish momentum yesterday. The main scenario remains bullish but the rising wedge bearish scenario warning is still there and we need price to violate the formation with strong momentum to continue the bullish scenario targeting 0.9140 before testing 0.9380 in longer term. On the downside, only a break below 0.8858 and the rising wedge formation could be considered as potential bullish failure.

GBP/USD Daily Forecast

The GBPUSD slipped above 1.5470 resistance area indicating potential further upside pressure at least targeting 1.5573 (February 23 high) before testing 1.5685 region (February 18 high). Another move below 1.5470 could lead us into neutral zone in nearest term testing 1.5400 but overall we are still in strong bullish phase and I prefer buy the dips strategy at this phase.

USD/JPY Daily Forecast

The USDJPY failed to continue its bullish correction yesterday and now back below 87.00. My short term technical study is a a little bit mess for this pair but overall the major scenario remains to the downside with nearest bearish target around 86.25 - 85.86 before re-testing 84.80 area. Immediate resistance at 87.50 followed by 88.23.

USD/CHF Daily Forecast

USDCHF is moving inside a rectangle area indicating consolidation after significant bearish momentum. We need a break from the range area to see clearer direction. Break above 1.0560 could trigger further bullish pullback testing 1.0650/70 while a break below 1.0399 could continue the major bearish scenario targeting 1.0320 and 1.0220 region.