USDJPY first resistance at 122.00/05 but if we continue higher

Daily Forecast - 11 December 2015

Dax December contract

Dax holding first support at 10560/570 re-targets strong resistance at 10670/680. This is the main challenge for bulls again today but shorts need stops above 10710. A break above Wednesday's high at 10720 is positive & targets 10785 then strong resistance at 10820/830.

Failure to hold first support at 10560 targets November lows at 10492/482 & this week's low at 10447. A break below 10440 is negative of course & targets only minor support at 10370/360. If we continue lower look for 10275/270 then 10210/200. A break below 10180 targets good support at 10120/110.

Eurostoxx December contract

EuroStoxx holding below first support at 3255 is negative for today with a break below 3230/20 to target 3200. If we continue lower look for strong support at 3189/85 & the best chance of a low for the day. Longs need stops below 3170. A break lower is a sell signal to target 3157/55 then 3143/40.

Holding above 3255 could re-target first resistance at 3290/93, perhaps as far as stronger resistance at 3305/10. Watch for a high for the day but shorts need stops above 3320. A break above targets 3330/33 then strong resistance at 3345/48.

Ftse December contract

FTSE first resistance at 6100/05 but above here targets stronger resistance at 6140/44. Watch for a high for the day but a break higher could target yesterday's highs at 6168/78. If we continue higher look for a selling opportunity at 6195/6200. Shorts need stops above 6215.

Failure to beat first resistance at 6100/05 targets 6075 then yesterday's low at 6067 before this weeks low at 6048. November lows at 6038 are obviously important. A break lower therefore is a sell signal & targets 6019 then 6005/01. If we continue lower look for 5979/75.

S&P December contract

Emini S&P must hold above 2052/53 to build a short term recovery & re-target minor resistance at 2064/65. If we continue higher today look for stronger resistance at 2074/75. Shorts need stops above 2080. A break higher targets 2094/96 then resistance at December/November highs of 2105/10.

Below 2053/52 targets yesterday's low at 2044 & could retest support at 2040/39. Any longs need stops below 2034 with a break to target 2030 then 2023/22 for some profit taking on shorts. Strong support at 2017/16 could be a good buying opportunity.

E Mini Nasdaq December contract

Emini Nasdaq holding above 4645 targets first resistance at resistance at 4660/65. If we continue higher we again look for strong resistance at 4673/77. Try shorts with stops above 4685. A break higher targets 4700/05. Further gains could target November highs at 4729/30. Above here the year's high at 4739/40 is the most important of the week. We need a weekly close above tomorrow to confirm a positive breakout to target levels not seen for over 15.5 years: 4749/51 then 4775.

Below 4620 risks a slide to 4613/11 then good support at 4597/94. Failure here however targets last week's low & good support at 4579/74. Be ready to sell a break below 4560 to target 4545/43 then support at 4525.

Emini Dow Jones December contract

Emini Dow Jones first resistance at 17610/620. If we continue higher look for 17685/695 once again. Further gains today target 17750 & perhaps as far as resistance at 17770/775. Shorts need stops above 17800 but strong resistance at 17880/890 is a big challenge.

First support at 17520/530 but below here re-targets 17445 then an excellent buying opportunity at 17415/405. Longs need stops below 17380. Further losses then target strong support at 17290/280. A good chance of a bounce from here but longs need stops below 17250 to target minor trend line support at 17150.

AUDUSD Spot

AUDUSD now trading back below 7276/78 as I write with first support at 7250/45. Failure here however targets 7220 then good support at 7199/94. This could hold the downside but further losses risk a retest of this week's low at 7274/69. If we continue lower look for support at 7155/52 with a bounce from here likely but longs need stops below 7125. Further losses target 7095/90.

Holding first support at 7250/45 allows a recovery to 7276/78 but above here look for strong resistance at 7297/7302. Shorts need stops above 7330. A sustained break higher targets 7360/63 then resistance at 7378/83.

EURUSD Spot

EURUSD first support at 1.0925/20 with a bounce from here possible but longs need stops below 1.0900. Be ready to sell a break below 1.0900 to target 1.0878/76 & perhaps as far as good support at 1.0850. We should be oversold short term at this stage so watch for a low for the day. However further losses risks a slide to 1.0790 for a buying opportunity.

Holding first support at 1.0925/20 allows a recovery to 1.0950 then 1.0975/80. Gains are likely to be limited but if we continue higher look for 1.0996/99. Just be aware that further gains towards very strong resistance at 1.1045/55 are an excellent selling opportunity. Shorts need stops above 1.1085. Bulls need a weekly close above here tonight to signal a longer term bullish move. First target 1.1095 then 1.1139.

USDJPY Spot

USDJPY first resistance at 122.00/05 but if we continue higher look for an excellent selling opportunity at 122.34/38. Shorts need stops above 122.55. If we break higher look for minor resistance at 122.66 then stronger resistance at 122.85/89.

Failure to beat first resistance at 122.00/05 targets 121.75 then support at 121.55/60. This could hold the downside but longs need stops below 121.35. Below here risks a retest of this week's low at 121.05. This is only minor support & further losses target slightly better support at 120.88/85. Failure here targets 120.59/55. If we continue lower this week look for strong support at 120.25/20 & a short term buying opportunity.