EUR/USD Daily Forecast

Thursday, July 29, 2010

The EURUSD made another indecisive movement yesterday, formed another Doji on daily chart. Price still unable to consistently move above 1.3000 and we know that it is a very strong resistance, which could produce bullish exhaustion and downside consolidation unless price able to break above 1.3045 area, targeting 1.3120 before testing 1.3270 - 1.3340 region. The bias remains neutral in nearest term but overall we are still in bullish phase. Immediate support at 1.2900 - 1.2880 area. Break below that area could trigger further bearish momentum testing 1.2735 key support area.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY failed to continue its bullish momentum yesterday and slipped below 113.50 indicating potential bullish failure and a false breakout scenario. I will stand aside from this phase for now. Immediate support at 112.70/60 region. Break below that area could trigger further downside pressure testing 111.60/50 area. On the upside, 115.50 and 117.00 remains the nearest bullish targets.

GBPJPY Daily Forecast

The GBPJPY attempted to push higher yesterday, topped at 137.55 but closed lower at 136.18. On h1 chart below we have a descending triangle formation indicating potential bearish in nearest term especially if price breakdown below the triangle targeting 135.50/15 region. On the other hand, breakout above the triangle could trigger further upside momentum re-testing 137.55 as bearish scenario fails.

AUDUSD Forecast

The AUDUSD had a bearish momentum yesterday. The rising wedge formation bearish warning is now become more real, threat the bullish scenario especially if price able to move consistently below the formation and 0.8858 key support area at least testing 0.8770. Immediate resistance at 0.8980 area. Break above that area could trigger further upside pressure testing 0.9025/70 region.

GBP/USD Daily Forecast

The GBPUSD was indecisive yesterday, made a Doji on Daily chart, pause the bullish momentum. The bias is neutral in nearest term. Immediate support at 1.5470. Break below that area could trigger further downside pullback but as long as price move inside the bullish channel wee area still in strong bullish phase. On the upside potential bullish targets remains at 1.5685 and 1.5815 region.

USD/JPY Daily Forecast

The USDJPY failed to continue its bullish correction yesterday. On h1 chart below we can see that price is now testing the trendline support indicating critical phase. Break below the trendline support could trigger further bearish pressure testing 86.82/33 region and could potentially end the upside correction. Immediate resistance at 88.23/11 area.

USD/CHF Daily Forecast

The USDCHF failed to continue its bullish correction yesterday but still able to move above 1.0560/40 support area so far. The bias is neutral in nearest term. Consistent move below 1.0560/40 and a break below the trendline support (red) could end the upside correction testing 1.0500 - 1.0480 before targeting 1.0399 key support area. On the upside, 1.0675 - 1.0750 remains the bullish correction nearest targets.