Daily Forecast - 25 February 2015
USDJPY
USDJPY has important support at 118.60/55 today & this level will determine direction. A break lower risks a retest of of last week's low of 118.21/16. Try longs with a stop below 118.05. Just be aware that any further weakness is likely to target 117.78/73 before good support at 117.50/45.
Holding support at 118.60/55 triggers a bounce to first resistance at 119.00/05. We should struggle here today but if we continue higher look for 119.18/20 and perhaps 119.36/41. A break above meets strong resistance at 119.58/62. Try shorts with a stop above 119.85!! A break higher however targets 119.95/120.00 then 120.32/37 before 2 week highs at 120.45/48.
AUDUSD
AUDUSD must now hold above 7848 to target strong Fibonacci resistance & February highs at 7875/80. It should be worth trying shorts with a stop above 7900. A break higher however could go on to target 7935/7940 then a selling opportunity at 7957/60.
Failure to beat 7875/80 triggers a move towards 7848/45 then support at 7825. We look for a bounce from here, but below risks a slide to strong support at 7780/75 for a buying opportunity. If however this does not hold the downside we could re-target last week’s low at 7750/45. A break below Tuesday's low at 7736 targets support at 7715/10. It could be worth trying longs here with a stop below 7695. A break lower however quickly targets 7670/65.
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