EUR/USD Daily Forecast

Thursday, August 12, 2010

The EURUSD had a huge bearish movement yesterday, bottomed at 1.2859 and closed at 1.2862. On daily chart below we can see that after failed to move above 1.3340 resistance area, the Euro has been under heavy pressure and now price seems ready to test the lower line of the bullish channel, which is located around 1.2700 area, especially if price able to move consistently below 1.2800. Break below 1.2700 and violation to the bullish channel could be seen as bullish failure and potential bearish reversal scenario at least testing 1.2470. Immediate resistance at 1.2920 followed by 1.2980 - 1.3000 area. Break above that area should keep the bullish scenario intact.

Daily Forecast for Crosses

EURJPY Daily Forecast

The EURJPY continued its bearish momentum yesterday, bottomed at 109.65 and closed at 109.74. The bias remains bearish in nearest term testing 108.07 - 107.30 area. Immediate resistance at 110.00 followed by 110.70. Break above 110.70 could lead us into neutral zone in nearest term but the main scenario remains to the downside.

GBPJPY Daily Forecast

The GBPJPY also continued its bearish pressure yesterday, bottomed at 132.79 and closed at 133.58. On h1 chart below, as a result of huge bearish pressure, we have a new sharper bearish channel indicating strong bearish momentum. The bias remains bearish in nearest term testing 132.00 region. Immediate resistance at 133.70. Break above that area could lead us into neutral zone in nearest term but overall we are still in a strong bearish scenario.

AUDUSD Forecast

The AUDUSD had a significant bearish momentum yesterday, bottomed at 0.8966 and closed at 0.8969. Although overall the major bullish scenario remains intact, it is surely under a serious threat since we have the rising wedge formation. To ignore this bearish reversal warning is foolish. The bias is bearish in nearest term testing key support area 0.8858. Break below that area could trigger further bearish pressure testing 0.8715 region. Immediate resistance at 0.9040. Break above that area could lead us into neutral zone in nearest term.

USD/JPY Daily Forecast

The USDJPY attempted to push lower yesterday, bottomed at 84.73 but closed higher at 85.32. The bias is neutral in nearest term but still within a strong bearish context. Another move below 84.82/73 region could continue the bearish pressure testing 83.35 area. Immediate resistance at 85.50 and the minor trendline resistance (blue). Break above that area could trigger further upside pullback testing 86.25 but I still prefer short on rallies strategy at this phase.

GBP/USD Daily Forecast

The GBPUSD also had a significant bearish momentum yesterday, bottomed at 1.5628 and closed at 1.5656. On daily chart below we can see that the Sterling has been under huge pressure after failed to move above 1.6000 psychological level and now seems ready to test the lower line of the bullish channel which is located around 1.5550 area. Break below that area and violation to the bullish channel could be seen as bullish failure and potential bearish reversal testing 1.5250. Immediate resistance at 1.5735 followed by 1.5800. Break above that area should keep the bullish scenario intact.

USD/CHF Daily Forecast

The USDCHF had a bullish momentum yesterday, topped at 1.0601 and closed at 1.0589. The bias is bullish in nearest term testing 1.0675 but note that overall we are still in consolidation phase. Break above 1.0675 could be seen a a serious threat to the bearish scenario testing 1.0837/50 area. Immediate support at 1.0500 - 1.0480. Break below that area could area could lead us into neutral zone in nearest term.