EURGBP first support at 7376/73

Daily Forecast - 23 December 2015

EURGBP Spot

EURGBP first support at 7376/73 but better support at 7357/53 could hold the downside. Longs need stops below 7345. On a break lower look for a buying opportunity at 7319/15. Longs need stops below 7300.

Holding first support at 7376/73 could re-target yesterday's high at 7408/16. A break higher targets 7425/30 then 7440/44. If we continue higher look for 7472/74 before October highs at 7490/93.

EURUSD Spot

EURUSD must now hold above 1.0930/35 to build on 3 days of gains for the next target of 1.1000/05. We should struggle in short term overbought conditions but a break above 1.1020 signals further gains to very strong resistance at 1.1045/55. This resistance at worked perfectly earlier in the month as we had expected & would be expected to do so again today. However shorts need stops above 1.1075. A break higher is a buy signal & targets 1.1095 then strong resistance at 1.1125/30.

Failure to hold above first support at 1.0930/35 however targets minor support at 1.0895/99. If we continue lower look for better support at 1.0860/65 which should hold the downside. A break below 1.0850 however risks a slide back to good support at 1.0805/00. Just be aware that break lower this week targets 1.0775 then good support at 1.0740/35.

GBPUSD

GBPUSD now oversold but without a buy signal yet, be ready to sell a break below 1.4800 in the bear trend to target 1.4795 then 1.4775/73 & 1.4755/51. A break below 1.4735 adds pressure to target 1.4699/95.

First resistance at 1.4865/70 should be a challenge this morning but if we continue higher look for a selling opportunity at 1.4905/10. Shorts need stops above 1.4935 to target 1.4950 then strong resistance at 1.4970/75. Shorts here need stops above 1.4999.

USDJPY Spot

USDJPY first support at 120.76/73 again today but below 120.70 risks 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 should stop out of any longs & signals further losses to target 119.99/95.

First resistance at 121.05/10 is only minor but above here targets stronger resistance at 121.36/40. This could hold a rally but shorts need stops above 121.55. Above here targets resistance at 121.80/83. If we continue higher look for a selling opportunity at 122.11/15.

AUDUSD Spot

AUDUSD holding above 7200/05 means we face first resistance at 7236/40. Again shorts need stops above 7255. If further gains are seen today look for the next target & resistance at 7273/78. We are overbought short term so watch for a high for the day but shorts need stops above 7290. A break higher could target 7310/14 then minor resistance at 7320/24.

First support at 7205/00 could hold the downside but longs need stops below 7190. A break lower targets good support at 7160/55 for a short term buying opportunity. Stop below 7135 to target good support at 7095/90 for the next 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.