Daily Forecast - 12 October 2017
EURUSD higher exactly as predicted to target 1.1870/80 & we have topped exactly here as I write over night. It is a two-stepsforward- one-step-back recovery so we could dip to 1.1840, perhaps as far as 1.1825/20 initially this morning. However eventually we should continue higher as far as strong resistance at 1.1920/30.
First support at 1.1825/20 could hold the downside but below here risks a slide to a buying opportunity at 1.1795/90. Try longs with stops below 1.1755.
GBPUSD closing in on our target & strong resistance at 1.3260/70...just 10 pips away as I write & we should at least pause here, perhaps dip to 1.3200/1.3190. A break higher is quite likely eventually however targeting an excellent selling opportunity at 1.3340/50. A high for the week expected if we reach this far so try shorts with stops above 1.3385.
First support at 1.3200/1.3195 could hold the downside but below targets 1.3165, perhaps as far as support at 1.3120/10.
USDJPY outlook negative & failure to beat first resistance at 112.52/48 re-targets 112.32/30, 112.15 & 112.00/111.95. This is the best support again for today but is likely to be weaker today. Longs are more risky therefore but if you try, you need stops below 111.85. A reverse back in to shorts then the right strategy on a break lower for further losses targeting 111.55/40 & perhaps as far as a strong buying opportunity at 111.10/00.
Any gains are likely to be limited now but above 112.60 allows a further recovery towards 112.90/95, perhaps as far as 113.20/25. An unexpected break above 113.40/43 targets a selling opportunity at 113.75/80, with stops above 114.05.
AUDUSD must now hold above the 100 dma at 7784/80 to start a recovery & ease oversold conditions. We only reached 7809 but should target second resistance at 7822/27 & we should struggle here today. However a break above 7835 signals further gains towards 7876 & strong resistance at 7880/85.
Failure to hold above the 100 day moving average support at 7785/90 today keeps bears in control for now to re-target 7750 & 7730/25. On further losses look for important 200 dma & 18 month trend line support at 7675/65. Try longs with stops below 7620.
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