USDCAD managed to beat 1.1500

Daily Forecast - 12 December 2014

AUDUSD

AUDUSD traded mostly within Tuesday's range so same levels apply for today. Above 8280/70 targets 8350/55 again today. Any shorts stopped above yesterday's high of 8375 for a move towards 8387/97 then 8420 & perhaps as far as 8440 today for a short term selling opportunity.

Below 8270 meets support at this week's low of 8220/10. Try longs with stops below 8195. However we are in a bear trend & despite oversold conditions be ready to go with a break lower to target 8153. Just be aware for next week that a break lower targets 2010 lows at 8086 & 8065.

EURGBP Spot

EURGBP beat the 100 day moving average at 7910/15 to hit very strong resistance at 7956/59 & our a selling opportunity. This trade worked perfectly as we topped exactly here at 7954 & collapsed to 7915/10 initially then continued lower support at 7880/75. The pair bottomed exactly here. Same levels apply for today & if we can hold onto support at 7875. We should see a bounce back to resistance at 7900/7910. If trying shorts at this resistance use a stop above 7920 and be ready to go with a break higher to target 7930/35. Any further gains meet as selling opportunity again at 7950/55.

Immediate support at 7875 of course but longs need a stop below 7860. A break below here today sees 7875/80 act as resistance for a move to the next downside target 7850/48. Further losses meet last week's low & trend line support at 7835/28. Try longs with stops below 7820. Be ready to go with a break lower however to target November lows at 7795.

EURUSD

EURUSD outlook is more mixed with yesterday's unexpected weakness. Same levels apply for today with immediate resistance at 1.2425/20 the key to direction. Above here is more positive & targets 1.2465. If we continue higher a test of December highs at 1.2494/06 is likely. A break higher today meets quite strong resistance at 1.2523/31. Watch for a high for the day here but a shorts will need a stop above 1.2550. If we continue higher look for the next target 1.2570/75 before a retest of November highs at 1.2595/1.2600. Just bear in mind that at this stage this is only a correction higher in a bear trend.

Failure to beat 1.2425/20 sees a retest of support at 1.2380/70. Longs need stops below 1.2360 today as we could then target 1.2330/20. If we continue lower in the longer term bear trend look for 1.2290/80 then December lows at 1.2250/45.

GBPUSD

GBPUSD again held above support at 1.5635/30 & beat 1.5690/1.5700 for a positive signal & we hit targets of 1.5717 then 1.5735/40 in a repeat of Wednesday's action but failed to reach 1.5765. Same levels apply for today with a break higher to target 1.5785/90 for profit taking on longs & an excellent selling opportunity with a high for the day expected. Try shorts with a stop above 1.5830. However an unexpected break higher sees 1.5785/90 act as strong support for a move towards 1.5855/60. If this does not hold a move higher look for strong resistance at 1.5935/40.

Below 1.5725/20 adds pressure again but there is quite good support at 1.5695/85. If however this does not hold the downside look for a test of the 3 day low at 1.5650/45. Failure here today targets 1.5610/00 then 1.5585/80.

USDCAD

USDCAD managed to beat 1.1500 but stopped nine pips short of our target 1.1558. Be ready to go with a break above here today in the Bull trend to target 1.1595/1.1605 then 1.1639 & perhaps as far as 1.1759 in to next week.

Failure to get through 1.1558 however is likely to trigger a little selling down to 1.1520/1510 & perhaps as far as a buying opportunity at 1.1500/1495 with a stop below 1.1480. Further losses meet very strong support at 1.1465/60 and it is very unlikely we will fall. Any further at this stage, but longs will need a stop below 1.1440.

USDJPY

USDJPY holding above 117.90/118.00 was a huge relief for bulls. To resume the Bull trend now we must hold above 118.80/70 to target trendline resistance at 119.50/55 today. Shorts need a stop above 119.70 to target Wednesday's high at 119.90/95. If we continue higher in the Bull trend, look for 120.15/20 then 120.40. Any further gains could make it as far as 120.95/121.00.

Strong support at 117.90/85 is key to direction again today. Longs need stops below yesterday's low at 117.40. A break lower is a very negative signal and targets 117.25/20 then 117.05/00. If we continue lower look for 116.90/85 but below here risks a slide as far as 116.40/30, which should hold the downside today at least. However longs need a stop below 116.00 for a move to strong support at 115.50/45. There is a very good chance of a low for the week here but longs will need a stop below 115.10.

AUDJPY Spot

AUDJPY key to direction is immediate resistance at 9860/70 today. It may be worth trying shorts with a stop above 9900 but be ready to go with a break higher using 9870/60 as strong support for a move to resistance at 9950. Watch for a high for the day here but if we manage to continue higher look for a very good selling opportunity at 9995/100.05.

Immediate support is at 9800/9790 but below here we are likely to retest support at 9750/45. If we continue lower today, look for an excellent buying opportunity at 9730/9720. A low for the day is expected here. Try longs with stops below 9705.