Daily Forex forecast analysis 12-28-2017 – 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 12-28-2017 includes information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD.
The euro continues to gain significant ground against the US dollar. The price action broke above the key area around 1.1909 and also above our descending trend line. There is no significant selling activity at this point, confirming that the order flow is heavily biased towards the buy side. Since a break above the trend line took place, we expect to see if the bulls will manage to hold the ground.
Currently, the trend is heading towards the 1.1934 resistance level, where sellers could enter the market. A break above that area will open more ground towards 1.1956.
On the downside, if selling activity picks up, we believe a retest of the broken trend line should follow. Only a break back below it could revive further sellers and push the price action lower.
- From the US, Initial Jobless Claims and Continuous Jobless Claims are due at 01:30 pm. Later, at 02:45 pm, Chicago Purchasing Managers’ Index will be due.
As we have mentioned in our yesterday forecast, a change of the relationship with the 20 EMA could spark impulsive selling. As you can see from our chart, the price action dipped for the last 24 hours. At the time of writing, we can see it dipping below a weekly low, with little profit taking. That communicates there is a commitment from the sell side to drive the price lower and continuation should be seen.
Since a break below a weekly low took place, we expect the price action to head towards 0.9813 support. If the sellers will continue to break lower, 0.9794 is the next destination.
On the upside, buying activity should be reduced. We expect sellers to resume if the price action will manage to get to 0.9835 or 0.9845. Getting long as this point means going against the dominant side, so you should not consider that option.
Cable ended the choppy period and started to trend on the upside yesterday. The price action headed into our trend line, where it found resistance. After a pullback towards the 20 EMA, the buyers had rebounded again. As you can see, the price action had managed to break above yesterday high. There is little profit taking at this point, which suggests the buyers are keeping their positions.
We are little above the 1.3432 resistance level and the buyers look very impulsive. With that kind of move, it seems unlikely the sellers will manage to hold. We expect a continuation towards 1.3445 resistance level or even higher towards 1.3466.
On the downside, the price action should continue to trade above the broken trend line. We expect short-term support around 1.3418 and only then the broken trend line and the 20 EMA should follow as support.
Dollar-yen also dipped impulsively in the last 24 hours. We can see how the price action had been floating below the 20 EMA. There are no pullbacks to the upside during the Asian session. That confirms the sellers had been driving the order flow impulsively. A pullback to the upside should follow, at least short-term. Sellers could wait for such a move in order to rejoin the bearish trend.
The price action broke below 112.82-112.88 key resistance area and we expect to see if buyers could drive the price action above it. If that will be the case, a deeper corrective move is expected towards 113.01.
If the sellers will continue to push the price lower, 112.71 follows as support. Breaking it will open further downside ground towards 112.50.
The Aussie had been gaining significant ground in the month of December. The price action is up more than 300 pips, which shows there is strong buying interest. The trend continued to extend at an even faster pace for the last 24 hours. However, we are approaching some stronger offer zones and some downside pressure could emerge. There is still no sign of significant selling at this point.
At the time of writing, we have the price action around the 0.7795 resistance. The candles have little wicks on the upside, suggesting that selling activity is reduced. A continuation higher will expose 0.7807 and 0.7831.
On the downside, if a retracement takes place, buyers are expected to rejoin the trend around 0.7774 and 0.7762. As a whole, the price action should continue to trade above the 4h chart 20 EMA.