EURUSD now trying a break above resistance at 1.0820/30
|Daily Forecast - 27 March 2017
USDJPY Spot
USDJPY severely oversold on the daily chart but we continue lower which is not a surprise as stated on Friday, to the next target of 110.50/40. However we do not hit support until we reach the 200 week moving average at 110.10/00. Exit shorts, but trying longs will be risky...might be better to wait for a bullish signal first.
Above last week's low at 110.60 may allow recovery in oversold conditions towards 111.05/10, perhaps as far as resistance at 111.35/40. A good chance of a high for the day. However on further gains look for a selling opportunity at 111.70/80.
EURUSD Spot
EURUSD now trying a break above resistance at 1.0820/30...shorts need stops above 1.0855. As I write we have only reached 1.0849, so the break is not convincing but if we do hold above 1.0840 the outlook turns positive initially targeting 200 day moving average resistance at 1.0880/90. This is now the main challenge for bulls today in overbought conditions. If you try shorts use stops above 1.0920.
Failure to hold above 1.0820 signals a false breakout this morning & risks a slide to minor support at 1.0770/60. On further losses look for better support at 1.0720/10 for some profit taking on any shorts.
AUDUSD Spot
AUDUSD holding the best support for today at 7610/00 as expected, targets 7635/39 then resistance at 7656/60. Watch for a high for the day. Above here is more positive targeting only minor resistance at 7692/96 then 7715/20.
The best support for today again at 7610/00 to try longs with stops below 7585. A break below 7585 is a sell signal & targets a good buying opportunity at 7525/15. Try longs with stops below the March low of 7488.
GBPUSD spot
GBPUSD hits the next target of 1.2525/30 as expected & despite overbought conditions we could reach 1.2575/80. On further gains this week look for 1.2610/15 then the 1.2672/1.2707 January/February highs.
Failure to beat re-targets 1.2525/30 support in the 1.2476/60 area & in fact we bottomed exactly here on Friday. However the most important support of the day is 1.2415/05.
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