USDJPY bears appear to remain in control as we fail to test 111.80/90
|Daily Forecast - 23 May 2017
AUDUSD Spot
AUDUSD holding resistance at 7470/80 as expected to target 7465 then first support at 7452/48 but the best support for today is at 7430/25 & could mark a low for the day. However the daily trend is negative so eventually we could resume that trend. If you try longs use stops below 7410 but be aware that a break lower is a sell signal targeting 7390 & 7365 before the 7330/26 low.
A break above 7500 however is a short term buy signal despite overbought conditions & sees 7490/85 act as support targeting 7535/45 & perhaps as far as 7580/90.
EURUSD Spot
EURUSD severely overbought so the question is can we close 2 days above 1.1210. I think risks are to the downside & failure to hold above 1.1200 should be seen as short term negative. First support at 1.1165/60 but a break below 1.1150 signals a move towards strong support at 1.1110/00. Try longs for a potential quick bounce, with stops below 1.1070.
Holding above 1.1210 risks a retest of 1.1260/63 highs. A sustained break above 1.1265 however targets 1.1299/10...the high last seen on the day of the US election in November.
USDJPY Spot
USDJPY bears appear to remain in control as we fail to test 111.80/90 & dip back below 111.20/10, targeting 110.75/70 & support at 110.55/50. A break below 110.20 then targets 109.90 & important 200 day moving average & 6 month trend line support at 109.80/70. This is the best chance of a low for the week as we head in to oversold conditions. We also have a gap to fill at 109.48 so longs need stops below 109.40.
Above first resistance at 111.20/30 targets only minor resistance at 111.80/90 then 4.5 month trend line resistance at 112.10/20. There is a good chance this area will mark a high for the day but shorts need stops above 112.60.
GBPUSD Spot
GBPUSD bulls managed a weekly above the psychological 1.3000 level on Friday but obviously need to beat the 1.3045/47 high last week to build on the gains targeting 1.3055/60 & 1.3085/90 before 11 month trend line resistance at 1.3110/20 & the main challenge for bulls this week.
Minor support at 1.2990/80 before the best support for today at 1.2940/30. Try longs with stops below 1.2890. A break lower however risks a slide to good support at 1.2830/20. Try longs with stops below 1.2790.
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