Daily Forex forecast analysis 04-24-2018 – 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 04-24-2018 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
The pair had continued to weaken yesterday and managed to break below 1.2216 level, which was the last April low. For the last few hours the price had managed to rebound, but given it had breached below the monthly low the bias is still to the sell side. If the current candles will close as it is right now, it will form a pin bar. That could signal a bullish retracement might be the next move.
If that will be the case and buyers will break back above the 1.2216 level, we should see further gains. Around 1.2240 and 1.2260 lies the next resistance levels, followed by the 4h chart 20 EMA.
On the downside, current daily and monthly low 1.2184 should act as support, if the sellers resume. A breach below it will open more room towards 1.2155 level.
- From Germany, IFO indicators are due at 08:00 am GMT.
- From the US, Home Prices index is due at 01:00 pm, followed by New Home Sales at 02:00 pm.
As opposed to the EURUSD, this pair continued to move on the upside, managing to break higher, without touching the 4h chart 20 EMA. There are a few days in a row since that had not happened, so we expect a retracement towards the EMA. However, that is not expected to change the current bias. It seems like investors are eager to buy the US dollar. Expectations around the economic development are high, but let’s see if the actual numbers comply.
The price is little above the 0.9774 resistance level, as it had stalled during the Asian session. Above that level, 0.9803 and 0.9826 are the next levels to watch for.
On the downside, if the sellers start to drive the price action lower, 0.9747 and the 4h chart will form a support. A break below is not excluded, but in the recent past, the buyers had started to resume around that zone.
- From Switzerland, Imports, Exports, and Trade Balance are due at 06:00 am GMT.
Similar to the EURUSD, Cable had also breached below the previous monthly low. However, the whole downside move covers more than 400 pips, which shows the impulsiveness of the move. Following the BOE comments the appetite for sterling looks diminished. We should see how the price action will react around 1.3965 key level. If it will be treated as resistance, a new wave of selling should be next.
If the previous monthly low will be treated as resistance, that will mean the sellers are eager to continue lower. In that case, we should expect 1.3912 and 1.3888 support levels to be reached shortly.
On a break back above the previous monthly low, further continuation higher is expected. The next significant resistance is located around 1.4011 and then around the 4h chart 20 EMA.
- From the UK, Public Sector Net Borrowing will be released at 08:30 am GMT.
Dollar-yen had breached the 107.90 key resistance area, which triggered follow through buying. What had resulted in a 100 pips move and prospects of further dollar strength. The move is impulsive, but we expect the price action to start consolidating. Even though that will take place, the bias will remain towards the upside. The trend had been reacting nicely to the EMA, so we expect that to take place again.
Some short-term resistance can be seen right now around the 108.85 level. However, if the bulls will be able to further break on the upside, 109.35 and 109.70 are the next targets to consider.
On the other hand, a consolidation lower will open more room towards 108.44 and 108.14. The EMA is expected to act as a pivoting point below them, so watch how the price action unfolds.
The Aussie continued to weaken and reached the bottom line of the channel again. Interest from the bulls can be observed there. The last candle has wicks on both sides of the market, so there was a tough of war going on there. However, since the bulls managed to prevent the break below the channel, that raises hopes for a retracement higher. We should see the price action recovering some of the losses in the hours ahead.
If the bulls will push the price higher, the next key level to watch is located around the 0.7643, which is the previous bottom low. Above it, 0.7660 will follow and buyers will have a hard time break that area.
On the other hand, support is expected around the bottom line of the channel. 0.7578, current daily low should also be a level where buyers might step in.