Daily Forex forecast analysis 04-20-2017 – 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 04-20-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The price consolidated throughout the day, yesterday, oscillating in a narrow range following the bullish impulsive move on Tuesday. We expect the upside to limited and the consolidation structure to advance further to the downside as investors would like to limit their exposure on euro ahead of the French election. We expect the upside trend to advance further next, depending on the election results.
Technically speaking, the price managed to reach 1.0703 area and then started to rise but not as impulsively as we expected to the leg up should be short lived. If it will advance further we believe it would fade around yesterday high or 1.0738.
On the downside, buyers could step in again around 1.0703 area, while a breakout below the level would expose 1.0690 or even 1.0671 area.
- From EU, German Producer Price Index is due at 06:00am GMT.
- From US, Continuing Jobless Claims + Initial Jobless Claims + Philadelphia Fed Manufacturing Survey are due at 00:30pm GMT.
After testing 0.9961 area, the price managed to recover some of the losses from Tuesday, almost reaching 0.9992 resistance area. As opposed to the EURUSD, we expect this pair to advance to the upside, due to high negative correlation between them. On the medium term the bias remains to the sell side as the price is located well below the descending trend line and the prospects for an advance in the bearish trend increase for the next week, depending on the result in the French Presidential election.
Shifting to the technical analysis, if the consolidation structure continues to build up, it might reach 0.9992 resistance area. If the buyers manage to overcome that obstacle, further gains towards 1.0008 could follow.
On the downside, if the selling pressure resumes, the price could test again 0.9961 support area. A break below it and below this week lows could open further ground towards 0.9947 and 0.9911.
Following the massive bullish impulsive move on Tuesday, cable started to consolidate to the downside yesterday. It broke back below 1.2796 weekly key area, and then consolidated in a narrow range. Looking at the price action right now we believe the sellers could drive the price lower in the short term, as the 400 pips bulls move was too extended from our point of view, if we consider the risks involved regarding the outcome of the election.
As long as the price stays below 1.2796 area, we believe there is room for more downside gains, towards 1.2774, where the price stalled yesterday or even lower towards 1.2728-1.2705 support area.
On the upside, a breakout above 1.2796 area, would mean the price could test 1.2808 and if the sellers do not manage to cap the upside, further gains towards 1.2851 could follow then.
- There are no important economic figures due to being released from UK, today, but BOE’s Governor Carney will hold a speech at 03:30pm GMT and that could spark sterling volatility.
The price is consolidating between 108.72-108.60 and 109.33 but so far did not manage to break either side. Until that happens is difficult to say which direction is more suitable. Considering that the price is consolidating after a strong bearish move, the outcome might be a new leg down towards this week low, but as long we don’t see determination from the sellers to drive the price down, the price could hover around for some time or even extend higher.
If the price reaches 108.72-108.60 area it might encounter buyers, considering it is a strong support area. A breakout below it would open further ground towards 108.12, this week low.
On the upside, if the price manages to overcome yesterday high, then 109.33 will follow as resistance, while a breakout above it would open further room towards 109.89 area.
There are no important news coming out from Japan today.
The price continued to advance further on the downside yesterday, managing to reach 0.7491 support area. After touching it started to consolidate higher, but as a whole looking at the price action structure the pair is poised for a breakout below last week lows. The order flow seems biased to the sell side as the buyers are unable until now to generate a stronger bullish impulsive leg up.
As long as that pattern continues, we expect the price to head down again, towards yesterday low around 0.7491 while a breakout below it would open further room towards 0.7474 area, very close to last week lows. A breakout below the area would open the door towards 0.7442 support area.
On the upside, buyers would need to overcome 0.7514 resistance area in order to open further ground towards 0.7527-0.7533 resistance area. We expect the sellers to enter the market impulsively, if the price reaches that point.