Forex – News and Educational Resource

The calendar is crowded today with major releases: Australian jobs, a rate decision in Switzerland and important figures in the US are the highlights today. Let’s see what’s up.

Dollar Advances Against Major Currencies

The dollar gained against a basket of currencies on Tuesday, hitting a one-month high against the Euro, buoyed by a sharp drop in the U.S. trade deficit in November. Investors braced for further rate cuts by the European Central Bank. For the last few months Forex markets have been especially volatile forcing traders and investors to consult their Forex converters almost hourly.

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Good day to all!

Although today brought us more data from the Euro Zone, trading remains slow.

EUR/USD is trading in a range for over a month. While the long term trend is bearish, some bullish hints can be found within this range.

by Johan Kriek (jkriek@fxinstructor.com)

Probabilities:

Direction of  Highest Probability: BULLISH
60 minute trend support: 1.3550
Bearish Probability below: 1.3550
Significant support: 1.3440
Significant resistance:1.3810

EURUSD Forecast:
The EURUSD attempted to push lower yesterday. Price slipped below the minor bullish channel, bottomed at 1.3537 but closed higher at 1.3600 and now back inside the minor bullish channel. This fact should keep the bullish correction intact and potential false breakdown scenario which could trigger upside momentum testing 1.3735/50 area. The bias remains neutral in both nearest and medium term as price still consolidation but the major trend should remain bearish as long as price move inside the major bearish channel. Note that only a clear break below the triple bottom formation at 1.3450/35 area could be seen as the end of the bullish correction scenario. Immediate support at 1.3530 area.

EURJPY Forecast
The EURJPY attempted to push lower yesterday after rejected to move above the trendline resistance, bottomed at 121.45 but closed higher at 122.33. The bias is neutral in nearest term but as long as price move below the trendline resistance the main trend should remain bearish. Immediate resistance at 123.00. Break above that area should trigger further bullish momentum re-testing the trendline resistance. Initial support at 121.70/45 area. Break below that area should continue the bearish momentum testing 119.70 region.

GBPUSD Forecast:
The GBPUSD attempted to push lower yesterday, bottomed at 1.4935 but closed higher at 1.4994. The fact that price still unable to make a clear break below 1.4950 area indicates that the bullish correction scenario remains intact but overall the pressure should remain to the downside. Immediate resistance at 1.5050. Break above that area could trigger further bullish correction towards 1.5200/50 area. On the other hand, clear break below 1.4950 area should continue the bearish momentum re-testing 1.4779.

USDJPY Forecast:
The USDJPY attempted to push lower yesterday, bottomed at 89.62 and closed at 89.95. The main trend should remain bearish but bullish correction remains intact as long as price stay above 89.50 area and we need a break below that area to continue the bearish scenario retesting 88.50. Immediate resistance remains around 90.50 area. Break above that area should trigger further bullish correction targeting 91.50.

USDCHF Forecast
The USDCHF made another indecisive movement yesterday, still trapped in range area of 1.0888 – 1.0640 as you can see on my h4 chart below. Boring, but we have to patiently waiting. The best 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. As the main trend remains bullish, I am expecting a downside correction towards 1.0640 before continue the bullish move targeting 1.1000 area.