Daily Forecast - 04 March 2016
GBPUSD Spot
GBPUSD headed higher as predicted & beat resistance at 1.4155/65 to hit the next target of 1.4185/90. We topped just 4 pips above. Overbought short term now so profit taking possible & targets 1.4155/50, perhaps as far as support at 1.4110/05. The downside should be limited but if we continue lower look for support at 1.4060/55 then a buying opportunity at 1.4040/30.
A break above 1.4200 is a buy signal & targets resistance at 1.4240/50. We should struggle here in short term overbought conditions but shorts need stops above 1.4270. If we continue higher look for the next target & strong resistance at 1.4325/30. Try shorts with stops above 1.4355.
EURUSD Spot
EURUSD trading just below 1.0950/55 as I write which could pressure the pair to 1.0908/05. If we continue lower look for the most important support of the day at 1.0885/80. However longs need stops below 1.0850. A break lower is a sell signal & targets this week's low at 1.0825/23. Obviously a break below adds pressure & targets 1.0810 then 1.0780.
Above 1.0955 targets the most important resistance of the day at 1.0985/90. A break below 1.1000 therefore is positive & targets 1.1016/19 then resistance at 1.1040/45. Shorts need stops above 1.1075.
AUDUSD Spot
AUDUSD very overbought short term as we hold just below October & December highs. Profit taking looks likely & targets 7335/30 then support at 7313/10. If we continue lower look for trend line support at 7272/68. There is also strong support at 7255/50 but below 7240 is a more negative signal.
December high at 7380/85 is the most important resistance of the day. A break above 7400 therefore is a buy signal & targets 7420/25 & 7435/40. Just be aware that a break above 7450 could targets strong resistance at 7490/95.
USDJPY Spot
USDJPY first support at 113.25/20 did hold the downside perfectly yesterday & is likely to do so again today as we try to build a short term bull trend. However a break below is a sell signal & targets 112.85/80, perhaps as far as minor support at 112.40/35. Further losses test this week's low at 112.14. Obviously a break below adds pressure & targets 111.90/85.
Holding first support at 113.25/20 again today targets minor resistance at 113.70/75 then 114.00. Above here targets yesterday's high at 114.27 then this weeks high & resistance at 114.50/55. If we continue higher look for 2 week highs at 114.87 but above here this week targets strong 100 week moving average resistance at 115.20/30.
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