USD/JPY first support at 100.30/25 held perfectly

Jason Sen DayTradeIdeas.co.uk

Daily Forecast - 26 August 2016

EURGBP Spot

EURGBP topped exactly at strong resistance at 8570/80 as predicted & is headed back to the 8540/30 level. This is only minor support so further losses are possible & target a buying opportunity at 8490/85, with stops below 8470. A break lower however is a sell signal targeting 8460 & good support at 8430/25 with a low for the day expected if we reach this far.

Strong resistance at 8570/80 is the best chance of a high for the day again today, but shorts need stops above 8595. Holding above 8585 is a buy signal targeting 8615 then resistance at 8630/35.

AUDUSD Spot

AUD/USD outlook negative but same levels apply for today with hardly any movement this week unfortunately. First support again at 7590/85. A break below here is more likely & is seen as a sell signal targeting 7550/45 but strong support at 7525/21 could hold the downside so we are profit taking on all remaining shorts on the approach to this area. HOWEVER longs are a little risky...if you try for a quick bounce, use a stop below 7490.

Resistance at 7630/35. Try shorts with stops above 7660. An unexpected break higher targets only minor resistance at 7685/90 then trend line resistance at 7720/25.

USDJPY Spot

USD/JPY first support at 100.30/25 held perfectly yesterday, but below here targets 9999/95. Further losses today could retest the August low at 99.55/53. A break lower in the bear trend cannot be ruled out & could target important June lows at 99.12/08. Buying here on the hope of a double bottom is too risky. A break below 9890 targets 9850/46 then 9810/05.

Holding above first support at 100.25/30 targets quite strong resistance at 100.71/74. If a break higher is seen look for 101.10/15, perhaps as far as a selling opportunity at 101.40/45. Shorts need stops above 101.80.

Author

Jason Sen

DayTradeIdeas.co.uk

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