AUDUSD might test weekly highs at .7490

Daily Forecast - 18 May 2017


AUDUSD high for this week is 7440/45 but above here targets quite strong resistance at 7485/90. A good chance of a high for the day but if we continue higher look for a test of important 100 & 200 day moving average resistance at 7535/45. A break above here however is a buy signal targeting 7595/99.

First support at 7390/85 is only minor but below here targets 7345/40 before a retest of 7330/26 lows & perhaps as far as strong 16 month trend line support at 7299/90. Try longs with stops below 7250. Further losses however test longer term 61.8% Fibonacci support at 7210.




EURUSD stopped 15 pips from the 111.85/90 target but showing no sign of a top to the rally yet. If we beat 111.90 look for quite strong resistance at 112.00/10 in to the end of the week. A good area for profit taking on any longs but shorts are too risky until we see a sell signal.

Below 1.1150 risks a slide to minor support at 1.1125/20 but we expect better support at 1.1095/90. Longs need stops below 1.1070 for a test of the next target & support at 1.1045/40. Try longs with stops below 1.1020.




GBPUSD holding above 1.2930/35 re-targets 1.2965/60 & 1.2985/90 highs. No reason we cannot break higher to 1.3020/30, 1.3055/60, perhaps as far as 1.3085/90.

Back below 1.2900 however risks a retest of minor support at 1.2860/55 (4 pips above this weeks low) but any longs need stops below 1.2840. Further losses then target a buying opportunity at 1.2785/75. Try longs with stops below 1.2740.




USDJPY bounced from 110.51 which happens to be 1 pip above the 61.8% Fibonacci support, taken from the April low of 108.11 to the May high high at 114.36. Minor resistance at 111.23/25 & 111.40/44. If we continue higher look for the strongest resistance for today at 112.10/20. Try shorts with stops above 112.50.

At this stage further moves to the downside are likely with support at 110.55/50 unlikely to be strong enough to trigger a significant bounce. Look for 109.90 & important 200 day moving average & 6 month trend line support at 109.70/60. This is the best chance of a low for the day. We also have a gap to fill at 109.48 so longs need stops below 109.30.


The contents of our reports are intended to be understood by professional users who are fully aware of the inherent risks in Forex, Futures, Options, Stocks and Bonds trading. INFORMATION PROVIDED WITHIN THIS MATERIAL SHOULD NOT BE CONSTRUED AS ADVICE AND IS PROVIDED FOR INFORMATION AND EDUCATION PURPOSES ONLY.