Daily Forex forecast analysis 04-23-2018 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market. These analyses are published here each day.
Forex Forecast Analysis 04-23-2018 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
The pair had been under pressure on Friday as traders positioned themselves for better economic figures from the US. The price action is well below the 4h chart 20 EMA, so there’s no doubt the sellers are the ones in control. Given the impulsiveness of the move, a continuation lower is the most likely scenario. However, consolidations higher are not excluded in the short-term.
Support is expected around 1.2260 and then the bottom of the pin bar candle we see on the chart. If a break lower occurs, 1.2240 and 1.2220 are poised to follow, then.
On the upside, if the buyers manage to accumulate enough, we should see the price heading towards 1.2292. If there won’t be strong enough selling interest there, 1.2313 and the 20 EMA are next on our list.
- Markit Services PMI, Markit PMI Composite, Markit Manufacturing PMI are due at 07:30 for Germany and at 08:00 am for the EU.
- The same PMI indicators for the US will follow at 01:45 pm. Existing Home Sales figures are next at 02:00 pm.
Dollar-swiss had continued to edge higher on Friday and thus far it shows signs of further strength. The price action had already breached above the last week high and the prospects of further gains are high. The price is still floating above the 20 EMA, showing how determined the buyers currently are. We do not exclude a retracement to the EMA, though, as it had not happened for a few days.
On the upside, the next significant resistance is located around the 0.9774 level. Above the 0.9800 will follow. If there won’t be able retracement until then, we expect sellers to resume around that level.
On the downside, support is located at 0.9722, a level backed by the 4h chart 20 EMA. Also, we have the 0.9697 level, which might also bring new buyers into the market if reached.
Cable had slumped more than 300 pips last week and the move continued on Friday after fresh hints from the BOE. Mark Carney, the chairman of the institution mentioned that the central bank “may not raise rates in May” adding pressure on sterling. The buyers are very weak thus far, meaning that the impulsive move should continue to extend lower. Some choppy activity might follow since we have a support located near.
During the Asian session, support had emerged around 1.3993 so we expect some buyers if the price resumes the downside. A break below that area could open more downside room towards the 1.3935.
On the upside, we already see sellers had emerged at 1.4023. If the bulls will manage to pass through that level, the next significant one is located at 1.4061.
Dollar-yen continues to pressure the 107.75 high and key resistance, having breached it during the Asian session. Currently, the price is consolidating lower, but the overall picture looks optimistic for the bulls. If the conditions won’t change, the pair is poised to advance higher, driven by the US dollar momentum. We should see if the 20 EMA will continue to act as support and keep the upside intact.
If the price will break back below the 107.77 level, 107.65 and the 20 EMA should follow. The EMA is a key support, a break below it signifying a weakening of the short-term bullish momentum.
On the upside, next resistance levels to watch are 108.09 and 108.26. The price had reacted to them in the past, so that could take place again.
The Aussie had weakened impulsively last week, losing more than 150 pips. The selling leg has 11 consecutive red candles, no green candles, which shows how impulsive the sellers had been. Almost two days of sustained selling and the prospects of further downside gains are now high. Currently, we see the price action retracing higher, but sellers might be waiting to sell on a rally.
If the price will continue to recover impulsively, we expect it to head towards 0.7704 and then the 20 EMA. Another level to mention is 0.7723 resistance, as we expect sellers there as well.
On the downside, support had emerged around 0.7659. If the sellers will drive the price towards it again, buyers might pose some troubles.