AUDUSD headed for strong support on the daily chart at 7565/55
|Daily Forecast - 28 October 2016
AUDUSD Spot
AUDUSD headed for strong support on the daily chart at 7565/55 & even stronger support on the weekly chart at 7520/10. This would be an excellent buying opportunity if hit. Try longs with stops below 7470. Minor resistance at 7585/90 but above 7610 could target 7640/45. Just be aware that a break above 7650 targets 7680/85. NOTE: NZDUSD has strong longer term support at 7050/40 for a buying opportunity with stops below 6980.
USDJPY Spot
USDJPY Fibonacci resistance at 105.30/40 the main challenge for bulls today & therefore bulls require a weekly close tonight above 105.50 for a further bullish buy signal. We then look for 105.85/90 & 106.40/50, perhaps as far as 200 day moving average resistance at 107.15/25.
First support at 104.90/80 is the most important of the day. Bulls must hold above here for obviously reasons. Longs need stops below 104.40. Just be aware that the last line of defence for bulls is support at 104.10/00. A bounce from here gives them a chance to push back to retest trend line resistance at 104.70/80. A weekly close below 104.00 is a sell signal for next week.
EURUSD Spot
EURUSD just managed to hold 1.0891/95 on the sell off & to repeat the pair are stable in oversold conditions but may take days to build a base & start a recovery. Again, holding above 1.0891/95 re-targets 1.0920/23 then 1.0945 but strong resistance at 1.0970/80 likely to see a high for the day if reached. Shorts need stops above 1.1010.
Failure to hold above 1.0891/95 risks a retest of support at 1.0860/50. Longs need stops below the March low at 1.0825/20. A break below here kills the positive signal & initially targets 1.0790/80 then 1.0755/50.
GBPUSD spot
GBPUSD holding below 1.2200/1.2190 re-targets 1.2140/30 before important 3 week lows at 1.2095/1.2085, which also held again this week. If we continue lower we could look for weak support at 1.1930/10.
First resistance at 1.2190/1.2200 but above here re-targets 1.2270/80, perhaps as far as resistance at 1.2325/35. This is also 2 week highs but a break higher this week could target strong resistance at 1.2440/60. This is also the 3 week high, but above here targets 1.2610/30, then some resistance at 1.2660/80. Further gains could target 1.2760/80, perhaps as far as resistance at 1.2805/25.
EURGBP Spot
EURGBP holding above 8935/40 allows a retest of strong resistance at 8975/79. Be aware that a break higher targets 9010 then 9025 & perhaps as far as 9040.
First support at 8935/40 now the most important support for today & longs need stops below 8900. A break lower retests the 2 week lows at 8881/77. A break lower this week initially targets 8850/45.
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