Daily Forecast for Majors

EURUSD Forecast:
The EURUSD had a narrow movement of only 66 pips yesterday and we do not see significant technical move yet so far. The bias remains neutral both in nearest and medium term while the long term outlook remains bearish. The bullish correction scenario testing 1.3750 area remains intact. Price has been moving in a ranging condition for five weeks now but traders surely waiting for a breakout which could give clearer direction. We will have US retail sales and consumer sentiment data today which is expected to be the catalyst to move the market. As risk aversion/appetite is likely to drive the market, a good result could support the Euro while a bad result could weigh on Euro and keep the major bearish scenario intact. Immediate support at 1.3620 followed by 1.3530. Break below 1.3530 should trigger further weakness for the Euro re-testing 1.3450/30 key support area while a break above 1.3750 should be seen as a serious threat to the major bearish scenario testing 1.3850 before aim for 1.4025/50 region as the bullish reversal scenario showed by the triple bottom formation is confirmed.

GBPUSD Forecast:
The GBPUSD had a bullish momentum yesterday, topped at 1.5065 and closed at 1.5058 after it found support on the major trendline support on Wednesday. This fact should keep the bullish correction scenario testing 1.5200/50 intact, but the main trend remains bearish as long as price still moves inside the major bearish channel. Immediate support at 1.5000 followed by 1.4950 area. Break below those area could trigger further bearish momentum testing 1.4873 even 1.4779 area.

USDJPY Forecast:
The USDJPY was indecisive yesterday, made a Doji on daily chart. The bias is neutral in nearest term. The bullish correction scenario testing 91.50 remains intact but the major trend should remain bearish as long as price stay below the major trendline resistance. On h4 chart below we have a rising wedge formation indicating potential downside scenario especially if prices violate the lower line, targeting 89.50 area.

USDCHF Forecast
The USDCHF still made insignificant movement yesterday, still trapped in range area of 1.0888 – 1.0640. We are still in a bearish correction phase, but the main trend remains bullish. The triple top formation around 1.0888 area indicating potential bearish reversal scenario but only confirmed by a consistent movement below 1.0640 targeting 1.0507 even 1.0400 – 1.0350 area. On the other hand, break above 1.0888 – 1.0900 area should continue the bullish scenario targeting 1.1000 region.

Setyo Wibowo
fxinstructor.com