Daily Forecast - 22 December 2015
AUDUSD Spot
AUDUSD holding above 7160/55 again today re-targets strong resistance at 7200/05. Again shorts need stops above 7220. A break higher today sees 7205/00 act as support to target strong resistance at 7236/40. It should be worth trying shorts here with stops above 7255. If further gains are seen look for the next target & resistance at 7273/78.
First support at 7160/55 could hold the downside again today, but below here risks a slide to 7135, perhaps as far as good support at 7095/90 for a buying opportunity. Longs need stops below 7070. Be ready to sell a break below 7070 to target 7045/40 then 7025/20 & perhaps as far as November lows at 7012.
USDJPY Spot
USDJPY holding below 121.04/00 targets 120.76/73 then minor support at 120.58/55. If we continue lower look for a retest of December lows at 120.34/32. There is strong support from here down to 120.20. A break below 120.10 therefore signals further losses to target 119.99/95.
First resistance at 121.46/50 could hold a rally but above here targets resistance at 121.83/88. If we continue higher look for a selling opportunity at 122.20/23.
GBPUSD.
GBPUSD holding below the 1.4894/84 area keeps the pressure on in the bear trend & risks a retest of last week's low at 1.4862. Be ready to sell a break below 1.4855/50 to target 1.4810. If we continue lower in the bear trend look for 1.4795 then 1.4775/73 & 1.4755/51.
First resistance at 1.4915/19 is only minor but could still hold a rally again today. However we are getting oversold so be aware that above here targets stronger resistance at 1.4950/54 for a selling opportunity. Shorts need stops above 1.4985. On a break higher 1.4954/50 should work as support & we then look for a move towards the next target & selling opportunity at 1.5005/09. Shorts need stops above 1.5030.
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