USD/CHF Daily Forecast

Wednesday, August 4, 2010

The USDCHF made another indecisive movement yesterday. We have unclear direction in nearest term as price is now consolidating but the main scenario remains bearish with nearest target remains around 1.0320 and 1.0220 area. Immediate resistance remain around 1.0500 region.

USD/JPY Daily Forecast

The USDJPY continued its bearish momentum yesterday, bottomed at 85.67 and closed hit 85.39 earlier today in Asian session. The bias is bearish in nearest term targeting 84.82 (November 2009 low). Immediate resistance at 85.96 and the minor trendline resistance (blue). Break above that area could lead us into neutral zone in nearest term but the main scenario remains bearish and I still prefer short on rallies strategy.

GBP/USD Daily Forecast

The GBPUSD also had a moderate bullish momentum yesterday, topped at 1.5966 and closed at 1.5950. The bias remains bullish in nearest term especially if price break above 1.5966 targeting 1.6000/50 before testing 1.6150. We are going to have the NFP on Friday and usually market could become a little bit more unpredictable especially in nearest term. Immediate support at 1.5850/15 region. Note that price has been moving in strong bullish momentum without significant correction since July 22 so any downside pullback should not be a surprise.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY failed to continue its bullish momentum yesterday and now back below 113.50. The bias is neutral in nearest term as direction is unclear but as long as price move inside the bullish channel the upside correction scenario remains intact. Immediate support at 112.70. Break below that area could trigger further downside pressure testing 111.50 and the lower line of the bullish channel. Initial resistance at 113.70/50 followed by 114.10/15 area.

GBPJPY Daily Forecast

The GBPJPY failed to continue its bullish momentum yesterday and slipped below 136.30 support area earlier today in Asian session. The bias is bearish in nearest term especially if price able to move consistently below 136.30 and violate the bullish channel testing 134.90 support area. Initial resistance at 137.36 (yesterday's high). Break above that area could continue the upside correction scenario testing 139.50 this week.

AUDUSD Forecast

The AUDUSD was indecisive yesterday. The bias is neutral in nearest term. The main scenario remains bullish but as long as the rising wedge exist, I will stand aside from this pair. Immediate support at 0.9070. Initial resistance, which is also the nearest technical bullish target at 0.9230 area.

EUR/USD Daily Forecast

The EURUSD had a moderate bullish momentum yesterday, topped at 1.3260 and closed a little bit lower at 1.3229. On daily chart below we have another bullish technical evidence where price break above the trendline resistance. The bias is neutral in nearest term but overall we are still in strong bullish phase. We are going to have the NFP on Friday and usually market could become a little bit more unpredictable especially in nearest term. Immediate support at 1.3200 followed by 1.3150. On the upside, a break above 1.3260 could trigger further upside pressure testing 1.3340.