Market Analysis

EURUSD Forecast:
The EURUSD had a significant bullish momentum yesterday, topped at 1.2854 and closed at 1.2807 after price break above the triangle. Positive data from China and Australia trigger risk appetite and hurt the Dollar. The “head and shoulders” bearish scenario remains intact but clearly under heavy pressure as price is now move above the neckline (1.2700). A new trend line resistance (yellow) is drawn as a result of yesterday’s price action. Break above that trend line and 1.2854 could trigger further upside pressure testing the right shoulder of the H&S formation around 1.2930 which could be a serious threat to the bearish outlook and potential bullish reversal scenario. On the downside, I think we need another move below 1.2700 to see further bearish pressure.

EURJPY Forecast
The EURJPY was corrected higher yesterday, topped at 108.59 and closed at 108.13. As you can see on my h4 chart below, overall price is in bullish correction phase after bottomed at 105.43 and making a bullish channel. Immediate resistance at the minor trend line resistance (red) and 108.59. Break above that area could trigger further upside correction testing 109.20/50 region. Immediate support at 107.65. Consistent move below that area could trigger further bearish pressure testing 106.57 but as long as price move inside the bullish channel the upside correction scenario remains intact.

GBPJPY Forecast
The GBPJPY also corrected higher yesterday, but still unable to break above 130.80 resistance so far. Potential range at 130.80 – 128.65. Break above 130.80 could trigger further upside correction towards 132.00 before testing the upper line of the bearish channel but as long as price move inside the bearish channel the major scenario remains bearish. On the downside, we need a break below 128.65 to continue the bearish scenario testing 126.75.

AUDUSD Forecast
The AUDUSD had a significant bullish momentum yesterday, break above 0.9040 resistance area, topped at 0.9113 but traded lower around 0.9070 at the time I wrote this comment. The bias is bullish in nearest term testing 0.9145. Another move below 0.9040 could lead us into neutral zone with potential downside pullback testing 0.8950/60 region but as long as price move inside the bullish channel and above 0.8858 key support area I still prefer a bullish scenario.

GBPUSD Forecast:
The GBPUSD was corrected higher yesterday on broad Dollar weakness, topped at 1.5489 and closed at 1.5451. The major bearish scenario remains intact but I think we could have another potential upside correction testing the trend line resistance (red) and 1.5525 – 1.5575 area especially if price break above 1.5489. Immediate support at 1.5385. Consistent move below that area could trigger further bearish pressure re-testing 1.5326 before targeting 1.5250 region.

USDJPY Forecast:
The USDJPY attempted to push lower yesterday, bottomed at 83.67 but further bearish pressure was rejected and closed higher at 84.43. Potential range area at 84.82 – 83.59 but still within a major bearish scenario. Break above 84.82 could trigger further upside pressure but only a move above the trend line resistance could be a serious threat to the current bearish outlook.

USDCHF Forecast
The USDCHF attempted to push lower yesterday, bottomed at 1.0065 but closed higher at 1.0156 and keep moving higher around 1.0175 at the time I wrote this comment. On daily chart below we can see that although yesterday’s price action not really made a hammer candle stick formation for potential upside pullback, but the fact that price is now back above 1.0130 could trigger further upside correction testing 1.0220 area as bearish pressure may have exhausted. Break above 1.0220 could trigger further upside momentum testing the trend line resistance (red). The major scenario remains bearish but we need a consistent move below 1.0130 to see further bearish pressure testing 1.0030.

Simultaneous Release at
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Good day forex trading koalas.

Today is mid week and i hope you are harvesting your pips!

In our last review, i mentioned that the lower personal income in the US may bear a burden on the US economy as consumer spending may lessen too. The general sentiment was rather negative as investors worried about the recovery of the economy.

Looking at the EUR/USD chart above, the currency pair seems to be done with ranging for now and has since shot up.

S&P 500 is advancing and is now at 1078+.

Oil is around $73+.

Gold remains elevated at $1246+. This is a reminder that we may not be quite out of the woods yet as gold is often a popular investment during times of uncertainty.

***

Better than expected industrial data from both of the world’s economic giant, the US and China brought upon a wave of positive sentiments. Investors were negative and this turn out of positive economic data probably triggered a knee jerk reaction. Joining on the party is Australia as the country posted economic expansion from the first quarter.k

On the employment front, the US remains weak as the ADP Non-Farm Employment Change came out worst than expected. While the media is not focusing on this for now, always keep a look out for reversal. The unemployment crisis in the US remains and threatens to derail the recovery.

From a technical point of view, the 1.28 line may be a tough nut to crack.

Tomorrow brings us data such as the Euro Zone Minimum Bid Rate and US pending home sales.

Trade Safely.

***

Do you like Twilight? While i find the story a little too much of a fantasy, i must say the romance experienced by Edward and Bella leaves me smiling to my self. ( P/S Jacob is handsome ! )

Related Forex Articles from the Koala Forex Training College.

• Gold is a popular investment during uncertainty
• The US Unemployment Rate

Read more Forex Articles and Views by The Koala at
TheGeekKnows.com – Learn Forex Trading and view EUR/USD Reviews.

EURUSD Forecast:
The EURUSD was volatile but indecisive yesterday. The bias is neutral in nearest term. From another perspective on h4 chart below we can see price is moving in a triangle formation indicating consolidation but the main scenario remains to the downside. Immediate support at 1.2620/30 region. Break below that area could trigger further bearish pressure testing 1.2587 – 1.2523. Initial resistance at 1.2742 (yesterday’s high). Break above that area could trigger further bullish momentum testing 1.2825 as the triangle is broken to the upside.

EURJPY Forecast
The EURJPY was indecisive yesterday. Price slipped above 107.65 but whipsawed to the downside, hit 106.24 and closed at 106.73. The bias is neutral in nearest term but still in a major bearish scenario. On h1 chart below we have a rising wedge formation. Break above the formation could trigger further upside momentum re-testing 107.65 and 108.25. On the other hand break below the formation could continue the bearish scenario testing 105.43.

GBPJPY Forecast
The GBPJPY continued its bearish momentum yesterday, bottomed at 128.65 but traded higher around 129.54 at the time I wrote this comment. The bias is neutral in nearest term but still within a major bearish scenario. Immediate resistance at 130.50 followed by 130.80. Break above 130.80 could trigger further upside correction but as long as price move inside the major bearish channel I still prefer a bearish scenario. On the downside, break below 128.65 could continue the bearish scenario testing 126.75.

AUDUSD Forecast
The AUDUSD was indecisive yesterday but had some upside pressure earlier today in Asian session. I have made adjustment to the bullish channel, connecting the lower line of the channel to key support 0.8858 which has been a strong support preventing further bearish attack and keep the bullish scenario intact. Immediate resistance at 0.9040. Break above that area could trigger further bullish momentum testing 0.9145.