Daily Forex forecast analysis 04-18-2017 – 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 04-18-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The ascending trend line continues to hold pretty nicely, the price rejecting off it yesterday as well, generating a 60 pips bulls move. Considering that liquidity was thin due to Easter Monday, the price retreated towards the end of the US Session and it seems like it could extend further below towards the trend line. We expect that to happen in the short term, although a significant breakout below or a bullish impulsive move would not take place until liquidity gets back to normal.
Technically speaking, the buyers would need to overcome 1.0650 area in order to be able to drive the price towards yesterday high around 1.0670. Above it, 1.0675, key resistance area, where the price rejected strongly last week, follows next and we expect the sellers to react, if the price reaches that point.
On the downside, if the bearish consolidation structure continues to advance, we expect it to reach 1.0629, while below the level the ascending trend line follows. We believe a strong breakout below the level would open further room towards 1.0599 and 1.0579.
- There are no important headlines due to being released from EU.
- From US, four Housing indicators will be published at 00:30pm GMT. Later, at 01:15pm, Industrial Production + Capacity Utilization will come out as well.
After opening the week with a bearish gap, the price managed to fill it and then resumed the downside, breaking 1.0026 support area and touching 1.0008. After that, the buyers entered aggressively and drove the price higher, managing to recover all the daily loses. Looking ahead, we expect the price to continue to consolidate below the descending trend line and a stronger move to the downside or a breakout above the line should take place in the following days.
If the buyers continue to move the price higher, we could see a retest of 1.0051 area, where the descending trend line is also located. A breakout above it, would open further room towards 1.0064 and 1.0084 area.
On the downside, as long as the price stays below the trend line, the sellers could manage to push it back below, towards 1.0026 and 1.0008, where it rejected yesterday.
There are no important news coming due from Switzerland.
The buyers managed to push the price higher, breaking last week high impulsively. After reaching 1.2584 and following a brief breakout above it, the sellers managed to stop the upside move and pushed the price back below the level. Even though the price managed to break below last week high, we believe there could be room for further gains to the upside considering yesterday bullish breakout.
The buyers would first need to overcome 1.2570 and 1.2586+ yesterday high in order to be able to extend the bullish leg towards 1.2600 area. We expect the sellers to react around that area as it generated a strong bearish move in the past.
On the downside, the price would need to break below 1.2547 and 1.2534 area in order to extend further. We believe the is room for a retest of the top line of the triangle pattern, if the price manages to break below the above mentioned areas.
Again, there are no economic indicators due to being released from UK.
After reaching a low of 108.12 following a small bullish gap, the price started to rebound, trading higher and breaking above 108.60-108.72 resistance area. Although we expect a pullback towards the area, we believe there is room for some more upside gains in the short and medium term. As long as the price does not break impulsively below 108.72-108.60 area, the bullish consolidation structure could extend further.
If it does that, we could see a retest of 109.33 resistance area in the short term. If the sellers do not manage to cap the upside, a breakout above and more gains could follow towards 110.08 area.
If the sellers step in again and manage to drive the price impulsively below 108.72-108.60 area, that would mean the downside trend resumed and a retest of yesterday low would be on the table.
After reaching last week high and briefly breaking it to reach 0.7603 resistance area, the price resumed to the downside, losing around 50 pips following the release of RBA Minutes a few hours ago. We believe the bearish impulsive move could extend further in the short and medium term as long as the price stays below 0.7586 and 0.7603. We keep a slightly bearish bias while below them.
If the sellers manage to hold the ground, an extension lower towards 0.7544 and 0.7514 could follow next. Below, 0.7491, where the bullish impulsive move started last week, would come out next.
On the upside, as we already mentioned, a breakout above 0.7586 and 0.7603 would be needed in order to open further room towards 0.7637 and 0.7662 area.