Daily Forecast - 23 January 2015
GBPUSD
GBPUSD outlook remains negative today after the breakout to the downside. Further losses target 1.4935 before support at 1.4870/60. If we continue lower look for a test of 2013 lows & good support at 1.4829/12.
Any recovery is a selling opportunity with immediate resistance at 1.5035/40 but above here look for a selling opportunity at 1.5080/85 with stops above 1.1515.
USDJPY
USDJPY is testing strong resistance at 118.70/80 for a selling opportunity with stops above 118.95. A break above 118.80 today however is very positive & should target 119.30, perhaps as far as 119.60/65. If we continue higher in to next week look for 119.88/96.
Failure to beat strong resistance at 118.70/80 should trigger a move lower towards 118.55/50 then support at 118.25/15. It should be worth covering shorts here with a low for the day possible but any longs need a stop below 117.90. There is good support at 117.70, so should be worth trying longs here with a stop below 117.45.
EURUSD
EURUSD breaking 1.1316 in the longer term bear trend targets 1.1270/60 then very strong support at 1.1210. The pair has already dropped from 1.2108 to 1.1316 in just 3 weeks with 8 out of 9 months of losses. 1.1220/10 is the best chance of a short term bottom we have seen for a long time & it may be wise to cover shorts here. There is a good chance of a bounce from here but longs need wide stops below 1.1180.
Immediate resistance at 1.1390/95 but if we can push above here look for a selling opportunity at 1.1440, with stops above 1.1460.
AUDUSD
AUDUSD outlook remains negative so be ready to go with a break lower again today to target strong support at 7945/40. Buy with stops on a move below 7915. However a break below here sees 7940/45 act as strong resistance for a move towards 7850/45, 7800 & perhaps as far as 7787 in to next week.
Any recovery is a selling opportunity with immediate resistance at 8055/60. Try shorts with stops above 8080. A break higher however meets the next resistance at 8105/10. Try shorts with stops above 8135.
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