Daily Forecast - 20 February 2017
AUDUSD Spot
AUDUSD first support at 7650/45 is the most important of the day. Try longs with stops below 7625. A break lower however is more negative targeting less important support at 7600/7595. A break below is an add sell signal targeting 7560/55.
Holding strong support at 7650/45 re-targets 7680/90 before resistance at last week's high of 7730/32. Abreak above 7740/44 this week targets 7760/65 then strong 1 year trend line resistance at 7800/7810 Try shorts with stops above 7845.
USDJPY Spot
USDJPY just holding trend line support at 112.70/65. We are oversold short term so a bounce from here is possible as stated on Friday, but longs need stops below 112.30. A break lower however targets 112.00/111.90 before the 111.70/60 low. Try longs with stops below 111.20.
Holding trend line support at 112.70/65 targets quite strong resistance at 113.10/20 but above here try shorts at 113.50/60 with stops above 113.95.
EURUSD Spot
EURUSD has recovered to first resistance at 1.0635/40 which should be the strongest of the day. If we continue higher look for a retest of Friday's high at 1.0670/75 but we could continue higher as far as resistance at 1.0710/20. Try shorts with stops above 1.0735. A break higher would be very unexpected...but targets 1.0760/65.
Failure to beat first resistance at 1.0640/35 re-targets 1.0615/10 & minor support at 1.0595/90. On further losses look for 1.0570/60 then a retest of last week's low at 1.0530/20.
GBPUSD spot
GBPUSD bottomed 6 pips above last week's low at 1.2379 on Friday. On further losses this week look for support at 1.2350/40. Longs need stops below 1.2320. A break lower targets 1.2260/55 for a short term buying opportunity, but longs need stops below 1.2230.
First resistance at 1.2485/80 should be the strongest of the day but above here targets 1.2535/40 then minor resistance at 1.2570/80, also the 2 week high. On a break higher this week look for 1.2600 then 1.2630 before the January high at 1.2670/73. Further gains test the February high so far at 1.2703/07.
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