Daily Forecast for Majors

EURUSD Forecast:
The EURUSD didn’t make significant movement yesterday. Overall price is still in consolidation range of 1.3450/35 – 1.3735/50. The bias remains neutral both in nearest and medium term but the long term outlook remains bearish. For me, there are two technical events that must take place in this situation to give us clearer direction, a break above the major bearish channel confirming bullish reversal scenario towards 1.4025/50 or a break below the triple bottom around 1.3450/30 area to confirm bullish failure and continue the major bearish scenario towards 1.3100. Immediate support at 1.3530. Break below that area could trigger further bearish pressure re-testing 1.3450/35 area. On the other hand, break above 1.3735/50 area should be seen as a serious threat to the major bearish scenario at least targeting 1.3850 region.

GBPUSD Forecast:
The GBPUSD had a volatile movement yesterday. Price attempted to push lower, bottomed at 1.4873 but whipsawed to the upside and closed higher at 1.4975. While this fact may seem a little bit confusing if we look at shorter time frames, actually as you can see on my daily chart below, it was clear that price bounced back to the upside after found support at the major trendline support, which is the key support area at this phase. The main trend remains bearish but we need a clear break below the trendline support to continue the bearish scenario testing 1.4500 area. The bias is neutral in nearest term. Immediate resistance at 1.5000/50 area. Break above that area could trigger further upside correction towards 1.5200/50 region. Initial support at 1.4930 followed by 1.4873. Break below 1.4873 should continue the bearish pressure re-testing 1.4779 area.

USDJPY Forecast:
The USDJPY attempted to push higher yesterday, slipped above 90.50, topped at 90.82 but still unable to move consistently above 90.50 so far. This fact could produce another false breakout scenario which could trigger a bearish momentum testing 89.50 area. The bias is neutral in nearest term but we are still in a major bearish outlook. The bullish correction scenario with technical target around 91.50 remains intact but we need a consistent move above 90.50 to continue the bullish momentum.

USDCHF Forecast
Boring, boring, boring. The USDCHF made another insignificant movement yesterday. As you can see on my weekly chart below, we have 5 Dojis so far indicating more than a month of indecisive movement as price still trapped in range area of 1.0888 – 1.0640. Well, always a look at the bright side that this situation is a perfect condition to learn to be patient and to see that doing nothing can be the best thing to do. My technical strategy remains to short around 1.0888 or long around 1.0640 with tight stop loss. Break above 1.0888 – 1.0900 area should continue the bullish scenario targeting 1.1000 while a break below 1.0640 should trigger further bearish correction towards 1.0507 area.

Setyo Wibowo
fxinstructor.com