Daily Forecast - 20 October 2017
EURUSD & USDCAD Spot
EURUSD holding above 1.1790/1.1800 targets last week's high at 1.1870/80. If you try shorts here, use stops above 1.1900. A sustained break above 1.1900 kills any potential negative pattern & acts as a buy signal targeting 1.1930, 1.1980 & 1.2010. Failure to beat 1.1870/80 risks a slide to support at 1.1800/1.1790. Try longs with stops below 1.1765. Failure however retargets 1.1750/45 & 1.1734. Further losses certainly possible to 1.1715/11 before the mega important support at 1.1680/70. A break below here completes the negative head & shoulders pattern for a significant longer term sell signal.
USDCAD first support at 1.2470/60 is key to direction. Holding here keeps bulls in control targeting minor resistance at 1.2500 then 1.2540 before the 1.2590/97 recovery high. A break above 1.2610 is a buy signal targeting 1.2670/80. Longs at 1.2470/60 need stops below 1.2430. Be ready to sell a break lower targeting 1.2395/85 & perhaps as far as 1.2330/25. Eventually we could reach 1.2265/60 at the start of next week.
GBPUSD & GBPJPY Spot
GBPUSD minor resistance at 1.3215/20 but above targets stronger resistance at 1.3260/65. If you try shorts use stops above 1.3290. A break higher targets very strong resistance at 1.3340/50. Above here therefore is a buy signal seeing 1.3350/40 act as strong support targeting 1.3415 & 1.3445/50 before trend line resistance at 1.3475/80. Strong support at 1.3145/40 holding so far this week but a break today targets 1.3120/16 then 1.3092/90 & perhaps as far as the October low at 1.3030/25.
GBPJPY sideways for 2 weeks. First resistance at 148.45/50 but above here targets 148.80/85 & perhaps as far as resistance at 149.30/40. Watch for a high for the day again. However shorts need stops above 149.80 to target 150.15/20 & 150.50/60. First support at 147.85/75 but below here targets 147.45/40 & the recent low at 147.00/146.90.
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