FOREX TRADING

Daily Technical Analysis

EURUSD Outlook

The EURUSD continued its bullish correction yesterday, topped at 1.3974 and closed at 1.3960. This fact should open the door for further correction testing 1.4000/30 area. Break above that area should continue the bullish correction testing the upper line of the bearish channel and 1.4250 resistance area. However as long as the bearish channel hold, this pair is still in a bearish phase in longer term point of view. Immediate support at 1.3900. Break below that area could end the upside correction testing 1.3750 area, which is technically remains the nearest bearish target this week.

GBPUSD Outlook

The GBPUSD made indecisive movement yesterday, but I think this pair is still in bullish correction phase now, testing 1.6040 area after touched bottom around 1.5830/50 area. Break above 1.6040 should trigger further bullish momentum testing the trendline resistance but as long as price stay below the trendline, the major bearish scenario should remains intact. Immediate support at 1.5900. Break below that area could end this bullish correction re-testing 1.5830/50 area once again

USDJPY Outlook

My technical study yesterday didn’t work for this pair, so I change my technical view. The pair has been moving higher since bottomed at 84.82 on November 27 2009, which is from long term point of view, should be seen as correction move after price failed to break above the major trendline resistance (blue). This bullish correction should remains intact as long as the trendline support (red) hold. The trendline support area technically is a good place for a long position with a stop loss below the trendline support. So we have a battle between the trendline resistance and trendline support at this phase. Break on either side will determine whether we will continue the bearish scenario or a bullish reversal scenario. Immediate support at 89.50. Initial resistance at 90.90 area. Break above that area should trigger further bullish momentum targeting 91.85.

USDCHF Outlook

The USDCHF didn’t make significant movement yesterday. I think we are still in bearish correction phase testing 1.0507 in nearest term. Break below that area should trigger further bearish correction towards 1.0350 area. Immediate resistance at 1.0600. Break above that area should trigger further bullish momentum towards 1.0700 area.

EURJPY Outlook

The EURJPY made indecisive movement yesterday, formed a Doji on daily chart. I think we are still in no trading zone, but aggressive traders might try to short around 126.89 area with only a tight stop loss. Break above 126.89 should trigger further bullish momentum testing 129.00 area. Immediate support at 125.80. Break below that area should trigger further bearish momentum towards 124.50 area

GBPJPY Outlook

The GBPJPY also made indecisive movement yesterday. The bias is neutral in nearest term and we are still in no trading zone. On h4 chart below we have a falling wedge formation which is technically a potential bullish pattern especially if price break above the formation. Immediate resistance at 145.45 area. Break above that area should trigger further bullish momentum towards 146.22 even 147.20 area. Initial support at 143.80. Break below that area should trigger further bearish momentum towards 143.00 even 142.00.

AUDUSD Outlook

The AUDUSD attempted to push lower yesterday, bottomed at 0.8780 but closed higher at 0.8862. It seems like price trapped in range area of 0.8925 – 0.8780. The bearish scenario should remains intact as price still move inside the bearish channel. I think the best strategy is to short around 0.8925 or long around 0.8780 with a tight stop loss. Break above 0.8925 should trigger further bullish correction testing the upper line of the bearish channel while break below 0.8780/33 should continue the bearish scenario targeting 0.8550 area.

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