Daily Forecast - 18 November 2014
EURGBP Spot
EURGBP will now need to beat 7970 for a chance to retest important resistance at 7990/8000. This remains a big challenge today & in fact a good chance we will turn lower from here once again, but shorts need stops above 8010. Be ready to go with a break higher to target 8025/8030 then a selling opportunity at 8047/52.
Failure to get through important resistance area at 7990/8000 as we become overbought triggers further profit-taking. In fact if we cannot beat 7970, a retest of support at 7952/7948 is expected. There is less chance of this level holding this downside today. Therefore longs need stops below 7940. Be ready to go with a break lower to target 7925/20 for an excellent short term buying opportunity with stops below 7910.
EURGBP held resistance at 7990/8000 & turned lower as predicted. The pair hit support at 7952/7948 & bottomed exactly here as forecast.
AUDJPY Spot
AUDJPY hit 102.38 tested support at 101.40/35 as predicted. Any longs here today again need stops below 101.20. If we continue lower look for good support at 100.85/75. A low for the day is expected here. Try longs with stops below 100.50.
Above 101.90 is more positive for today & but we do have a negative candle formation on the short term charts. It therefore looks like it will be a big challenge to break yesterday's high at 102.38. As stated the pair are severely overbought, so there are risks to the downside this week. However we must still be ready to go with a break higher, to target 102.63/68 & perhaps as far as 102.90/93.
AUDJPY held above 100.70 to keep the outlook positive & even broke 101.35/40 to ensure that the strong trend continues into this week.
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