Daily Forecast - 27 April 2015
EURUSD Spot
EURUSD has made a good recovery in the bear trend to unwind oversold conditions but we are now starting to look overbought. Watch trend line support at 1.0845/40 as below here is more negative for today & targets 1.0810/05. Failure here adds pressure to target better support at 1.0760/55. A good chance of a low for the day to try longs with stops below 1.0735.
Be ready to go with a break above 1.0900 to target 1.0925 & perhaps as far as a selling opportunity at 1.0940/45, with stops above 1.0965. A break higher however could then target April highs at 1.1025/35.
GBPUSD
GBPUSD key to direction is strong resistance at 1.5170/75 & again today, shorts need stops above 1.5200. We are severely overbought short term & on the daily chart but Friday's strong gains could encourage bulls today, so be ready to go with an unexpected break higher to target 1.5250/55.
Failure to hold above 1.5175 targets trend line support at 1.5125/20 but we could continue lower to 1.5080/75. If we dip as far as better support at 1.5055/50 there is a good chance of a low for the day but longs need stops below 1.5025.
USDJPY Spot
USDJPY holding below 118.90 keeps the market under pressure & risks a slide to April lows at 118.55/51. This is also the lower trend line of the triangle pattern & could hold the downside today. However a break lower risks a retest of of April lows & Fibonacci support at 118.30/20. This is the last line of defence for bulls this week but being oversold short term we should see a bounce from here. Try longs with wide stops below 118.00.
First resistance at 119.10/15 then the 100 day moving average at 119.30. Shorts here need stops above 119.45 to target resistance at 119.60/65.
AUDUSD
AUDUSD immediate resistance at 7845/55 as we become overbought short term. Only a break & close above the 100 day moving average at 7885 would then turn the outlook more positive for this week. We could then go on to target 7900/05 & March highs at 7935/40.
AUDUSD immediate resistance at 7845/55 as we become overbought short term. Only a break & close above the 100 day moving average at 7885 would then turn the outlook more positive for this week. We could then go on to target 7900/05 & March highs at 7935/40.
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