Daily Forecast - 08 March 2016

GBPUSD spot

GBPUSD

GBPUSD holding above 1.4240/50 keeps bulls in short term control & a break above 1.4280 targets strong resistance at 1.4325/30 where a high for the recovery looks likely. Try shorts with stops above 1.4370.

First support at 1.4240/50 but below here targets 1.4215 then minor support at 1.4180/75. If we continue lower look for good support again at 1.4155/50. Longs need stops below 1.4120.


USDJPY Spot

USDJPY

USDJPY breaks lower trend line support at 113.50/45 & further support at 113.20 which was the last line of defence for bulls. The sell signal targets 112.85/80 then minor support at 112.40/35. Further losses test last week's low at 112.14. Obviously a break below adds pressure this week & targets 111.90/85.

First resistance at 113.20 could hold any recovery but above here a selling opportunity at 113.50/55. Shorts need stops above 113.80. An unexpected break higher however targets 114.00/05 then trend line resistance at 114.40/45.


AUDUSD Spot

AUDUSD

AUDUSD no stopping the bulls as we beat 7440/45 to top just 6 pips from the target & resistance at 7490/95. We are overbought so we should struggle to make further gains but there is certainly no sell signal. If we continue higher today look for 7531/35.

We have dipped to 7450 as I write. Below 7440 risks a slide to first support at 7400/7395. We should meet buyers here but a break below 7390 risks further losses to 7360/55 for a buying opportunity with stops below 7330.


EURGBP Spot

EURGBP

EURGBP first resistance at 7740/44 but above here re-targets important trend line resistance at 7775/80 for a selling opportunity with stops above 7790. A break higher however targets 7800/05 then minor resistance at 7828/30.

Failure to beat first resistance at 7740/44 targets 7725/21 then 7715 before important support at 7700/7690 which could hold the downside today. A break lower however is a sell signal however & targets 7665/60 then 7650/45 & minor support at 7620/15.


EURUSD Spot

EURUSD

EURUSD first resistance at 1.1040/45 is the main challenge for bulls today. Shorts need stops above 1.1075. A break higher is a buy signal however & sees 1.1045/40 act as support to target minor resistance at 1.1100 but if we continue higher look for the next target of 1.1135/40 then strong resistance at 1.1160/65.

Failure to beat strong resistance at 1.1040/45 targets first support at 1.0995/90 but this is only minor & further losses target the best support for today at 1.0955/50. However longs need stops below 1.0930. A break lower risks a slide as far as minor support at 1.0910/05.


Gold Spot

Gold

Gold bulls remain fully in control with first support at 1264/63. However below here risks a slide to 1259 then support at 1253 which should hold the downside. Longs need stops below 1250.

Holding first support at 1264/63 targets 1267/69 then resistance at 1274/75. We should struggle here but shorts are risky in the bull trend so watch for a move above here to retest last week's high at 1279. Just be aware that a break higher targets 1283/84.


Emini Dow Jones March contract

Emini Dow Jones

Emini Dow Jones overbought & risks grow to the downside as we appear to run out of steam in the bear trend recovery. We managed a close above the 100dma at 16990 but failure here signals a false break & adds pressure targeting first support at 16930/920. If we continue lower look for better support at 16860/850. However longs need stops below 16800 & a break lower is a sell signal targeting 16740, perhaps as far as support at 16710/16595.

200 day moving average at 17120/130 plus longer term Fibonacci resistance at 17170 & the 100 week moving average at 17210 are all major barriers to further gains this week.


S&P March contract

S&P

Emini S&P Fibonacci resistance & 100wma at 2007 was the greatest challenge for bulls in this 3 week bear market bounce & this has held perfectly so far. Same levels apply for today after yesterday's inside day with first downside target 1988/87 then first support at 1985/1984. There is further support at 1979/78. However a break below here targets 1974, 1968/67 then strong support at 1961/59. This is the best chance of a low for the day.

Any gains should be limited with first resistance at 1994/95 then trend line resistance at 2004/05. If we continue higher the most important resistance of the week is at 2007/2009. In fact only a daily close above the 200 day moving average at 2018 would force me to believe the overbought conditions are being ignored & bulls can push higher to 2035.

The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD steady below 1.0800 after US PCE meets expectations

EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair barely reacted to US PCE inflation data, with the Greenback shedding some pips.  Fed Chair Jerome Powell set to speak ahead of the weekly close.

EUR/USD News

GBP/USD hovers around 1.2620 in dull trading

GBP/USD hovers around 1.2620 in dull trading

GBP/USD trades sideways above 1.2600 amid a widespread holiday restraining action across financial markets. Investors took a long weekend ahead of critical United States employment data next week. Fed Chair Powell coming up next.

GBP/USD News

Gold price sits at all-time highs above $2,230

Gold price sits at all-time highs above $2,230

Gold price holds near a fresh all-time high at $2,236 in thinned trading amid the Easter Holiday. Most major world markets remain closed, although the United States published core PCE inflation, the Federal Reserve’s favorite inflation gauge.

Gold News

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito price could hit $6 as JTO coils up inside this bullish pattern

Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.

Read more

Key events in developed markets next week

Key events in developed markets next week

Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.

Read more

Majors

Cryptocurrencies

Signatures