EURUSD could turn lower from strong resistance at 1.0860/65

Daily Forecast - 26 January 2016

EURUSD Spot

EURUSD could turn lower from strong resistance at 1.0860/65 today & target 1.0825/22. If we continue lower look for 1.0800/05 which could hold the downside but further losses retest last week's low at 1.0777. A break below here this week targets 1.0765/62 then support at 1.0740/35 & a bounce from here likely.

Strong resistance at 1.0860/65 but shorts need stops above 1.0885. A break higher sees 1.0865/60 act as support to target resistance at 1.0895/1.0900. A good chance of a high for the day but shorts need stops above 1.0925. Just be aware that a break higher is more positive for today then & targets 1.0935/40 then 1.0965/70.

GBPUSD January contract

GBPUSD testing support at 1.4210/00 but below here risks a slide to 1.4155/50. If we continue lower look for 1.4125/20. Further losses retest the 1.4084/79 low which is the most important of the week of course.

Holding first support at 1.4210/00 targets first resistance at 1.4250/60. This could hold a rally in the bear trend but above here targets 1.4285, perhaps as far as 1.4305/10. If we continue higher look for our selling opportunity at 1.4350/55. Shorts need stops above 1.4380. A break higher is a buy signal however & sees 1.4355/50 act as support to target 1.4420/25.

EURGBP Spot

EURGBP trading above 7610/12 but 7625/30 is the main challenge for bulls today. A break above 7650 should give a more positive outlook & clears a path to 7665 then 7690 & perhaps as far as 7705. Further gains target 7717/22.

Failure to beat 7625/30 is more negative & targets 7612/10 then the best support for today at 7580/75. However a break below 7665 adds pressure targeting 7550 & 7525/20.

AUDUSD Spot

AUDUSD holding below today 6945/50 keeps the pressure on in the bear trend for 6920/15 then support at 6885/81 for profit taking on any remaining shorts. Just be aware that further losses target 6855/50 before last week's low at 6829/24.

We could actually hold above 4945/50 this morning despite the bear trend, being oversold short term. We should then target 6990/95 & perhaps as far as strong resistance at 7015/20. This again is the main challenge for bulls, try shorts with stops above 7050. A break above 7050 however is a short term buy signal & targets 7075/78. We should struggle here as we become overbought short term but further gains target 7102/04, perhaps as far as an excellent selling opportunity at 7130/35.

USDJPY Spot

USDJPY first support at 118.20/15 but this is only minor so we could continue lower in the bear trend to strong support at 117.80/75. Exit shorts & try longs with stops below 117.50. However a break below 117.70 is seen as a sell signal & targets 117.45/40 then better support at 117.10/05 for profit taking on any remaining shorts.

Another selling opportunity at 118.85/90 today if we see a recovery & a good chance of a high for the day here again. This is the most important resistance of the day but shorts need stops above 119.15. A break higher therefore is a short term buy signal & targets 119.27/30 then strong resistance at 119.70/75.