Daily Forecast - 20 April 2017
EURUSD overbought short term as we warned yesterday & the pair bottomed exactly at first support at 1.0700/90 but could continue lower today to minor support at 1.0680/70. Further losses are possible in to the end of the week to test key support at 1.0625/20. Try longs with stops below 1.0600. A break lower is an important sell signal.
A break above 1.0745 targets quite strong resistance at 1.0770/80. Exit all remaining longs & try shorts with stops above 1.0800.
USDJPY still in a bear trend despite oversold conditions so we can hope for a drift lower to this week's low at 108.15/10. Buy anywhere from here down to strong support at 107.90/80. This is an excellent buying opportunity in oversold conditions with a very good chance of a strong recovery. Try longs with stops below 107.40.
First resistance at 108.70/80 is very minor then 109.20/25 is more of a challenge & has held all week. If we continue higher today look for the next target & a selling opportunity at 109.80/90, with stops above 110.20. We could sell off back to 109.30/20.
GBPUSD first support at the December high at 1.2774 but below 1.2760 risks a slide to good support at 1.2720/10. Try longs with stops below 1.2685. Just be aware that further losses target minor support at 1.2650/40 then a buying opportunity at 1.2610/00.
Holding the 1.2775/65 area allows a recovery to 1.2855/60 before the 1.2900/04 high. Bulls are in control so a break above the September low at 1.2912 targets 1.2935 & 1.2950 then 1.2990/95 & 1.3020.
AUDUSD has seen 2 days of losses. First resistance at 7530/40 is key to direction. Holding here keeps the pressure on for 7500 & the 7475/70 low. This is not a good support level so a break lower certainly possible targeting 7450/45 & 200 day moving average support at 7420.
First resistance at 7530/40 but above here allows a recovery towards resistance at 7575/80. Try shorts with stops above 7600.
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