Daily Forecast - 11 January 2016
USDJPY Spot
USDJPY breaks last week's low of 117.30 to target 116.85/81 then 116.65. There is no decent support today until August lows at 116.46. A break below here however is obviously negative therefore & could target January 2015 lows at 115.82.
First resistance at 119.35/39 then 117.67/71 could hold a rally. Further gains meet a selling opportunity at 118.30/34. Shorts need stops above 118.55.
AUDUSD Spot
AUDUSD weekly close below 6990 & at the lows of the week are a negative signal for the start of this week. Further losses target late September lows at 6937/32. If this does not hold the downside in oversold conditions we risks a retest of important September & 2015 lows at 6901/6893. A break & daily close below here is another sell signal to target 6867/63 and 6850/48.
First resistance at 6970/75 but any shorts need stops above 6985 to target 7015/20 then 7045/50. If we continue higher look for an excellent selling opportunity at 7075/80.
EURGBP Spot
EURGBP has hit the next target of 7530/35 & topped at 7554 over night. First support at 7223/20 then better support at 7502/7498. Longs need stops below 7485 to target strong support at 7470/65. Look for a low for the day but longs need stops below 7450.
A break above 7554 targets 7573/76 then 7590/95. Exit longs & try shorts from here up to 7610/15 with a high for the week possible. Shorts need stops above 7625.
EURUSD Spot
EURUSD has made a break above strong resistance at 1.0930/35 over night this morning to reach 1.0968. We have backed off quite sharply however to first support at 1.0930/26. Below here look for better support at 1.0908/03 but longs need stops below 1.0890. A break lower targets good support at 1.0870/65 for the best buying opportunity of the day. Longs need stops below 1.0840 to target strong support at 1.0810/05.
A break above the 1.0968 high targets minor resistance at 1.0982/85 then strong resistance at 1.1020/25. A good chance of a high for the day but shorts need stops above 1.1055.
GBPUSD spot
GBPUSD outlook negative despite oversold conditions with the close at the low of the week only encouraging for bears. A break below 1.4500 keeps those bears in control to target 1.4475 & 1.4429/25 - levels not seen for over 5.5 years. If we continue lower look for 1.4386/82 then quite good support at 1.4355/45. This could hold the downside of tested.
This is a chance we can hold 1.4505/00 & target 1.4547/50. Above we look for resistance at 1.4575/79 which could hold a rally. However further gains target a selling opportunity at 1.4615/20. Shorts need stops above 1.4645. Just be aware that further gains meet a selling opportunity at 1.4675/80. Stops above 1.4700.
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