Daily Forecast - 29 April 2015
AUDUSD
AUDUSD first support at 7975/70 but below here look for a buying opportunity at 7930/20. Longs need stops below 7900. An unexpected break lower however targets 7880 then strong support at 7855/50.
Be ready to go with a break above 8030 to target strong resistance at 8050/60. This is the main challenge for bulls today in an overbought market. It could be worth trying shorts with stops above 8075. However a break higher is an added positive signal & targets 8100/05 then 8130/35.
EURUSD Spot
EURUSD hit all targets & managed a break above 1.0940/45 to top at 1.0990. Profit taking today could test support at 1.0950/45 then 1.0925/20. This could hold the downside but below here look for a buying opportunity at 1.0890/85 with stops below 1.0865. An unexpected break lower targets the next support at 1.0820/15.
1 month trend line resistance at 1.1000 is the first challenge for bulls & push higher meets April highs at 1.1025/35 but the main challenge for bulls today is at 1.1040/50. Try shorts with stops above 1.1070. A break higher however is a positive signal & sees 1.1050/40 act as support to target 1.1110/15.
GBPUSD
GBPUSD UPDATE: GBPUSD has tested strong resistance at 1.5370/75 but a push higher reached 1.5405 to trigger stops on shorts. However we are so severely overbought that further gains seem limited & risks are increasing to the downside. We must watch 1.5350/1.5345 carefully. A break lower is less positive for today & risks a slide to support at 1.5320/15. If we continue lower look for support at 1.5280/75. A good chance this will hold the downside today but longs need stops below 1.5255. bl sees 1.5275/80 act as resistance to target support at 1.5210/05.
Only a close above 1.5370/75 would now be seen as positive but a break above 1.5405 could reach as far as 1.5440/45.
USDJPY Spot
USDJPY holding below 118.85/80 could test important trend line & support at April lows at 118.60/50. This could hold the downside but a break lower risks a retest of March lows & Fibonacci support at 118.30/20. This is the last line of defence for bulls this week. Try longs with wide stops below 118.00.
First resistance at the 100 day moving average at 119.30. Shorts here need stops above 119.45 to target resistance at 119.65/75. Try shorts with stops above 119.85. Be ready to go with a break higher to target 120.15/20.
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