EURGBP clearly in a powerful bull trend as we target 7736/39

Daily Forecast - 20 January 2016

EURGBP Spot

EURGBP clearly in a powerful bull trend as we target 7736/39. Further gains target 7757/60 then 7780/82. If we continue higher look for resistance at 7795.

Support at 7715/13 but below 7695 risks a slide to 7660. The downside is likely to be limited in the negative trend but further losses offer an excellent buying opportunity at 7635/30.

EURUSD Spot

EURUSD first resistance at 1.0940/44 but a break above the 2 day high today could retest last week's high at 1.0984. Further gains target an excellent selling opportunity at 1.1020/25. There is a good chance of a high for the day & even for the week but shorts need stops above 1.1060.

Holding below 1.0920 targets 1.0900/1.0895 then support at 1.0880/76. A good chance of a low for the day and this did just hold yesterday, but longs need stops below 1.0850. Further losses target 1.0835/31 then support at 1.0815. Try longs with stops below 1.0795. Further losses however could target 1.0765/62. If we continue lower look for support at 1.0740/35 to hold the downside.

GBPUSD spot

GBPUSD recovery could target 1.4183/80, perhaps as far as 2010 year lows at 1.4230/35. This could hold a rally but further gains meet a selling opportunity at 1.4285/90. Shorts need stops above 1.4320.

Needless to say this is a bear trend so failure to beat 1.4183/80 re-targets 1.4134/30 & perhaps as far as 1.4108. Further losses target 1.4090 & 1.4050/45.

USDJPY Spot

USDJPY has dipped back to 117.21/25 & this held perfectly for a bounce to first resistance at 117.65/70. Again gains are expected to be limited but if we continue higher look for another selling opportunity at 118.10/15. Try shorts with stops above 118.30. An unexpected break higher however targets 118.45/49.

First support at 117.21/25 but below targets 117.00/95 then 116.70/67. August lows at 116.46 are important today of course. A break below here however is obviously negative therefore & could target January 2015 lows at 115.82. This is now the most important support of the week. A break below here however targets 1 year lows at 115.56.

AUDUSD Spot

AUDUSD closing in on 6885/81 but the outlook remains negative so we could continue lower to 6855/50. Further losses retest last week's low at 6829/24. This is not a particularly important support so be ready to sell a break below here to target 6801/00, 6765/60 & 6735/30.

If we hold 6881/85 look for a bounce to resistance at 6915/20. Gains are expected to be limited but look for a selling opportunity again at 6945/50 if we reach this far. Shorts need stops above 6980. An unexpected break higher however targets an excellent selling opportunity at 7015/20.