Daily Forecast - 20 October 2017
AUDUSD & NZDUSD Spot
AUDUSD tests first resistance at 7880/85 before the 7892/97 high last week. Obviously this is now key to direction & worth profit taking on our longs before the weekend...but shorts are risky. However we must be ready to buy a break above 7910 in the bull trend to target 7945/49.
Failure to beat the 7885/95 area targets 7860/56 before another buying opportunity at 7835/31. Longs need stops below 7810. An unexpected break lower however targets 7790 & 7770/65.
NZDUSD collapsed to a new 4 month low. Below 7000 targets 6975 & probably as far as 2 year trend line support at 6960/50. Obviously this is the most important level of the day. If you feel brave enough to try longs use stops below 6910.
Gains are likely to be limited with first resistance at 7055/7065. Shorts need stops above 7085. Further gains target 7110/15. Shorts need stops above 7135.
USDJPY & EURJPYSpot
USDJPY holding below 112.75 targets minor support at 112.55/50 before much better support at 111.90/80. Longs need stops below the 111.64 low for this week. A break lower targets 111.25. Exit shorts here & try longs at 111.10/00, with stops below 110.80.
Holding above 112.75 targets the September high of 113.25, perhaps as far as the 2 week high at 113.40/43. From here up to 7 month trend line resistance at 113.60/65 should cause bulls big problems. We will see if bears re-take control to keep us in a 10 month sideways trend.
EURJPY also mostly sideways for 4 weeks. Above minor resistance at 133.50/60 targets 134.00/05 before the September 134.38/41 high.
Minor support at 132.80/70 but below here targets 135.35/30 then support at 131.80/70. Longs need stops below 131.50.
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