GBPUSD: holds minor support at 1.2860/55 for a bounce to 1.2895

Daily Forecast - 12 May 2017

GBPUSD spot

GBPUSD holds minor support at 1.2860/55 for a bounce to 1.2895. Bulls still remain in control so we could target 1.2920/10 then 1.2930/35. If we continue higher look for 1.2965/60 & 1.2985/90 highs. Just be aware that a break higher targets 1.3020/30, 1.3055/60, perhaps as far as 1.3085/90.

Holding below 1.2900 risks a retest of minor support at 1.2860/55 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.

AUDUSD Spot

AUDUSD holding just 3 pips below resistance at 7386/90 on Thursday keeps the pressure on for a retest of 7330 & perhaps as far as strong 16 month trend line support at 7295/85. This has to be worth looking for a low for the 2 month bear trend as we become oversold in the longer term sideways trend. Try longs with stops below 7250. Further losses however test longer term 61.8% Fibonacci support at 7210.

Bears remain in control at this stage until we test strong support or see a buy signal, with minor resistance at 7386/90 but if we now continue higher look for a selling opportunity at 7420/30, with stops above 7455. A break higher however sees 7430/20 act as support targeting 7485/90.  

USDJPY Spot

USDJPY running out of steam in severely overbought conditions. Minor support at 113.84/80 & again at 113.49/44 but further losses meet a buying opportunity at 112.95/90. Try longs with stops below 112.55. A break lower however targets strong support at 112.05/111.95.

May be we can have a last push higher & above 113.90 opens the door a retest of 114.33/36 but the important resistance is at 114.55/60. Try shorts with stops above 114.00 to see if we can top out & have a correction in to next week to ease overbought conditions. A break (& close weekly for confirmation) above 114.80 however keeps bulls in full control targeting 115.16/19 then a test of 4 month trend line resistance at 115.35/40 but we could eventually make it as far as 2 year trend line resistance at 116.60/80. 

EURUSD Spot

EURUSD holding good short term support at 1.0860/50 as we become oversold short term & we are perhaps building a small base here. It might even be worth trying a long now with stops below 1.0820. Another bounce targets 1.0895/98 before quite strong resistance at 1.0910/20. Watch for a high for the day. However further gains not out of the question now & so shorts may be a little risky. Further gains target 1.0960 then a selling opportunity at 1.0980/90. Try shorts with stops above 1.1035.

Support at 1.0860/50 holding with further 200 day moving average support at 1.0830/20. Only a weekly close tonight below here is another sell signal targeting more important 1 year trend line support at 1.0775/70 & the best buying opportunity of the week. Try longs with stops below 1.0730.