Daily Forex forecast analysis 04-14-2017 – we analyzed the upcoming currency pairs and events of the day that could impact the Forex market, These analysis are published here each day.
Forex Forecast Analysis 04-14-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
It seems like 1.0659-1.0666 area proved to be a strong resistance area, since the price rejected off it strongly, erasing almost all the gains that followed President Trump comments regarding the impact of a strong dollar on the economy. At the time of writing the price is very close to our ascending trend line but, considering the impulsiveness of the bearish leg down, a breakout lower is not excluded.
If 1.0609 support area and the trend line do not manage to provide enough support we might see a breakout lower taking place today. Considering that the Easter holiday is near and liquidity is low, we might expect wild swings throughout the day. Below that area, 1.0588 and 1.0567 follow.
On the upside, if the price stays above the trend line, we might see a retest of 1.0629 area. If the buyers manage to move the price above it, more gains could follow towards 1.0659-1.0666 area.
- There are no headlines coming due from the EU.
- From US, Retail Sales figures and Consumer Price Index figures are due at 00:30pm GMT.
The price rebounded higher yesterday, managing to reach 1.0053 where it started to form a consolidation structure. So far, a new retest of the descending trend line is very likely today, especially if the economic data from the US will come positive. However, we expect a quiet European session as all the financial industry prepares for the Easter holiday. We expect tight ranges and no important breakout scenarios.
If the price manages to move above 1.0055, we expect it to head towards the trend line. Above it, 1.0080, where the sell off started, is next.
As long as the price stays below 1.0055 a retreat towards 1.0040 and 1.0026 could follow in the near future. Below them, 1.0006, where the rebound higher started, stands as support area and could cap the downside.
There are no important headlines due from Switzerland.
After the breakout above the triangle formation, the price retreated towards it again, but more impulsively than we expected. So far the price is hovering around 1.2506 and the triangle top line and we expect it to do that as long as volatility does not spike. We also expect quiet trading day for sterling due to holiday approaching, but the US session could provide some volatility as there are some important economic indicators due to being released.
If the top line of the triangle and 1.2506 manage to provide enough support for the price, we might see a rebound higher, towards 1.2529 and 1.2556 area.
If the price breaks again lower and moves inside the triangle, further slides could follow towards 1.2481 area. Below it, 1.2448 follows.
After touching the 108.70 support level, the price started to correct higher, reaching 109.34 resistance. It seems like the sellers where strong enough to cap the upside, as the price could barely breach by a few pips the area. Looking ahead, we expect tight range during the day, as the financial institutions and traders across the western world prepare for the Easter Holiday. There should be no directional bias as the liquidity will get back in shape next week.
As long as the price stays below 109.34, we expect the price to head again towards 108.70. We believe there should be no strong breakout below it, but if that happens, the price could head towards 108.38 or 107.87.
On the upside, if the buyers manage to overcome 109.34 area, then 109.69 and 110.10 will come into place.
After reaching 0.7585 area and following a brief break above it, the market started to form a consolidation structure that extended towards 0.7567 support level. So far, we expect the consolidation phase to continue throughout the day, and there could be possible that the price should reach 0.7544 area. Also, the impulsive move that formed on Friday should not extend higher as long as liquidity and volatility remain at low levels.
Technically speaking, if the price breaks below 0.7567 area, it could consolidate lower towards 0.7544, followed by 0.7532 and we expect the downside to be limited around that area.
On the upside, if the price stays above 0.7567, there is room for a retest of 0.7585 and yesterday high. Higher, 0.7614 will follow.