EURUSD Forecast:
The EURUSD made a significant bullish momentum yesterday. On h4 chart below we can see that after breakout above the trendline resistance (red) price had a bullish momentum, topped at 1.4820 and closed at 1.4788. The rising wedge formation is no longer valid and the bearish reversal scenario has been canceled. The bias is bullish in nearest term targeting 1.4880 area before aim for 1.5000 area. CCI in overbought area and heading down on h4 chart so watch out for potential downside rebound testing 1.4766. Break below that area could lead us into no trading zone as the pair might rebound lower towards 1.4670 but the outlook remains bullish and short position is not recommended.

GBPUSD Forecast:
The GBPUSD made a significant bullish momentum yesterday. On h4 chart below we can see that after rejection to move below 1.6113 support area the pair bounced to the upside. The bias is bullish in nearest term targeting 1.6555 area and the bearish correction might over now. Immediate support at 1.6300 area. Break below that area should lead us back into no trading zone.

USDJPY Forecast:
The USDJPY failed to continued it’s bullish correction yesterday. On h4 chart below we can see that the bullish channel has been violated to the downside and price traded below 91.80 indicating that the bullish correction is now over and the pair is ready to continue it’s major bearish scenario. The bias is bearish in nearest term but watch out for a good support around key support level 90.20/10 area. Break below that area should trigger further bearish momentum targeting 89.60 area. Immediate resistance at 91.25. Break above that area should lead us into no trading zone but the outlook remains bearish and long position is not recommended.

USDCHF Forecast
The USDCHF continued it’s bearish momentum yesterday. On h4 chart below we can see that after break below 1.0275 support area the pair had a bearish momentum, bottomed at 1.0214 and closed at 1.0237. The bias is bearish in nearest term still targeting 1.0135 area. Immediate resistance at 1.0275. Break above that area should lead us into no trading zone as the pair might corrected higher testing 1.0380 but long position is not recommended.

Have a great day!

EURUSD Forecast:
The EURUSD made another moderate bullish momentum, topped at 1.4766 and closed at 1.4743. The bias remains bullish in nearest term with potential targets at 1.4825 (September 23 2008 high) and 1.4867 (September 22 2008 high). On h4 chart below we can see that the pair still trapped in the rising wedge area and we really have just a very little room left before the break. I think I will keep out from the market until we have a break from the rising wedge. The best place to put a long position is still around the rising wedge lower line but with only so little room left in the rising wedge, the risk-reward ratio is not too good at this phase. I know this situation really test our patient. It’s clear that we are in bullish momentum and Dollar remains under pressure but I can not (and will not) ignore any potential reversal/correction signal. Immediate support at 1.4630 followed by 1.4550.

GBPUSD Forecast:
The GBPUSD attempted to push higher yesterday, topped at 1.6567 but failed to break above my 1.6580 resistance area before whipsawed to the downside, bottomed at 1.6425 and closed at 1.6446. On h4 chart below we can see that the upper line of the bearish channel did a good job keeping the bearish scenario intact. The bias is bearish in nearest term targeting 1.6350 area (50% Fibo of 1.6113 – 1.6740) and the lower line of the bearish channel. CCI just cross the -100 line down on h4 chart suggesting potential further weakness for the Sterling. Immediate resistance at 1.6480 – 1.6500 area. Break above that area should lead us into no trading zone.

USDJPY Forecast:
The USDJPY made another indecisive movement yesterday. However, on h1 chart below we can see that the trendline resistance (red) has been violated to the upside at the same time price is making a new bullish channel (blue channel) indicating potential further upside correction testing 91.80 key resistance area. As long as the pair stay below that area I still prefer bearish scenario, but I will stay out for now. Immediate support at 90.70. Break below that area should trigger further bearish pressure re-testing 90.20 key support area.

USDCHF Forecast
The USDCHF made another moderate bearish momentum, bottomed at 1.0275 and closed at 1.0281. Slowly but sure, the pair keep moving lower and now traded below 1.0300 area. The bias remains bearish in nearest term targeting 1.0210 area. I do not see any reversal/correction signal so far, so I am hoping further downside pressure. Immediate resistance at 1.0325 area. Break above that area should lead us into no trading zone and might go higher re-testing 1.0420 area.

Have a great day!

Bias: Cautiously while 1.4559-66 holds I still look for the rally to
extend to 1.4618-26 before lower

Yesterday was a rather whippy and erratic day and does seem to be indicative of the fact that we are very close to an interim high. However, I do feel there should be one more attempt. For this the 1.4559-66 support should ideally hold. From here a break back above 1.4606 would extend gains to the
1.4618-26 area (max 1.4636) where I feel we shall see the beginning of the long consolidation I have been expecting. Thus, any stronger bullish stance would require a break above 1.4636 and if seen would extend the rally to
1.4717 and 1.4752.

Please view the complete analysis in the attached PDF file.

For a full description of how to use the analysis please see the Analysis page of my website. The prior day’s set ups for potential trading levels highlighted in the report are now available on the Daily Forecast page of my web site.

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