Daily Forex forecast analysis 12-27-2017 – 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 12-27-2017 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
Happy Holidays to everyone! We are back in trading after Christmas and the EURUSD is edging higher impulsively. During the Asian session, it surged on the upside and is currently located around 1.1879-1.1876 key resistance area. The bulls managed to break above it short-term but will be interesting to see whether they will manage to hold the ground. Liquidity is very thin during this period so reversal happens quite often, even after sharp moves.
If the sellers will resume impulsively and drive the price back below the above-mentioned area, some further downside continuation is expected. Current daily gains could be under pressure as the price action could head towards 1.1861 support level.
On the upside, if the buyers will continue to edge higher, our next resistance level is located around 1.1889. A break above it will put last week high, located around 1.1901 under pressure.
- From the US, Pending Home Sales figures are due to being released at 03:00 pm GMT.
Dollar-swiss is in consolidation mode since December 21st. Since the buyers had rebounded the price higher and that we are still around the 20 EMA, we assume there is room for more upside gains in the short-term. Will be interesting to watch how the price action will behave around the EMA. We currently see buying pressure emerging right below it, which is a positive sign for the buyers.
A break above the EMA will expose first the resistance around the 0.9903 level. Yesterday high will be under pressure then, followed by December 15th high, place around the 0.9930 level.
On the downside, a change of hands will be signaled by sellers treating the EMA as resistance. If that will take place, we expect 0.9878 and 0.9861 to be reached in the short-term.
- From Switzerland, Zew Survey- Expectations are due at 09:00 am GMT.
Since December 18th Cable had been in a choppy trading mode and thus far it does not a directional bias. The price action is still building up below our descending trend line. That is a positive sign for the sellers and as long that will continue, a new round of selling could begin. We expect strong offers around the trend line, but given the low liquidity, it could take some time until it will reach that area.
Currently, the price action is located little above the 1h chart 20 EMA. Shortly, yesterday high could be under pressure if the bulls will continue to pressure. Above that area, the trend line should provide stronger selling interest.
On the downside, the sellers will need to break below the EMA first, in order to continue lower towards 1.3353 support level. If buyers will be unable to cap the downside there, further slides could follow towards the 1.3129 area.
- From the UK, BBA Mortgage Approvals are scheduled for 09:30 am GMT.
Starting from December 21st, the dollar-yen had consolidated lower. By comparing the prior bullish move with the current bearish consolidation, we can see there is a slightly big advantage towards the buy side. However, short-term the relation towards the 20 EMA seems to have changed. As long that will continue, we expect more selling to follow on the short-term horizon.
We can see the price action found support around the 113.12 level yesterday and as it heads towards it again, buyers could resume there. If not, a break and continuation lower, towards the 112.93 support could follow.
On the upside, a breakout above the 1h chart 20 EMA could revive bullish momentum in the short-term. Current daily high, located around 113.36 could be the first resistance, followed by 113.56.
The Aussie is the best performing pair until now, having cleared the key resistance located around the 0.7730 level. Looking at the entire bullish leg up, we can see that the bullish momentum had been very strong, with little selling force along the way. We think there will be a mistake to short the market at this point. The order flow looks heavily biased towards the buy side.
Since a break above our key resistance took place, as long as the buyers will hold the price above it, we believe there is room for more upside gains towards 0.7784 and 0.7807.
On the downside, the broken key level should act as support now. Below it, we have the 0.7719 and then the 20 EMA, so from that point of view there is limited room for the sellers.