Daily Forex forecast analysis 04-27-2018 – 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 04-27-2018 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
The euro continued to weaken yesterday as the ECB did not give him any help. The price action had breached below the 1.2154 which was a monthly low. Since the break took place impulsively, that means the sellers had been able to overcome buyers in a strong support zone. Today we have another round of important economic figures. The focus will be on the United States this time.
During the Asian session, the price action had stalled around 1.2096 support level and it is currently consolidating higher. If the buyers will manage to push the price further, the 1.2144-1.2154 is expected to act as a resistance.
On the other hand, a new round of impulsive selling could favor the dollar further. The next support level to watch is located around 1.2042.
- From the EU, Consumer Confidence, Industrial Confidence, Business Climate and Services Sentiment are due at 09:00 am GMT.
- From the US, GDP figures and Personal Consumption Expenditures are due at 00:30 pm GMT.
We’ve talked about the dollar-swiss consolidating yesterday and the bulls resumed following that move. The pair is up more than 7% since mid-February, which is quite an impressive performance for a liquid pair. Also, the trend does not show any signs of weakness, meaning the buyers are still eager to keep their positions. However, any negative news could have a stronger impact then it should have due to current overbought conditions.
The price action is located under the 0.9900-0.9913 resistance area but it could be reached very soon. If the sellers won’t be able to cap the upside, the next level to watch is 0.9935.
On the downside, if sellers will take control over the order flow in the short-term, 0.9851 and 0.9826 are the next levels to watch on the downside. The buyers could rebound again around the 20 EMA.
Cable had a choppy activity for the last 24 hours, but still, the bias had remained to the downside. The sellers had not allowed the price to spend too much time above the 1h chart 20 EMA. Even though some signs of stronger buyers can be seen, the sellers almost managed to erase all the gains. Today we have important indicators both from the UK and the US, so we should have activity again.
At the time of writing, the price action is located around the EMA, and sellers already show their presence. A breach above the EMA could open more room towards 1.3965 and 1.3992 levels.
On the other hand, if the price moves further on the downside, support is expected around the 1.3911 level. A new monthly low will expose the 1.3887 or even 1.3857 support.
- From the UK, GDP figures are due to being released at 08:30 am GMT.
The pair had consolidated lower for the past 24 hours, but still, the move covers too little ground. Nine candles could barely cover the gains of two green candles, which shows there is still little interest from the sellers. Because of that, buyers might be able to advance further. We do not want to rush and we suggest waiting for the GDP figures from the US to be released. A surprising figure could be a game changer.
On the upside, resistance is expected around 109.35 area. If that area fails, 109.69 and 110.00 are next on our list. The pair should continue to move higher, as the US dollar is the dominant currency in the market right now.
On the downside, the 4h chart 20 EMA could act as a support area, backed by the 108.85 level. If the sellers will manage to push the price lower, 108.44 should be watched next.
The Aussie had not been able to break back inside the channel and sellers continued lower. We cannot spot any sign of strong bullish activity thus far, all the green candles being weak. Because of that, risks to the downside still persist and we could see sellers advancing further in the hours ahead. A break back inside the channel could change the math and suggest a retracement higher should follow.
If sellers will push the price further, 0.7535 and 0.7509 level are expected to act as support. Only weaker figures from the US could trigger some strong buying pressure.
On the upside, resistance is expected around the 20 EMA and bottom line of the channel. Both are located very near and this confluence of indicators brings more sellers together.