Daily Forex forecast analysis 04-25-2017 – 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 04-25-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
Following the huge weekend gap, the price managed to fill half of it, then entered in a consolidation phase, having no directional bias until now. We expect that to continue, as today we have a bank holiday throughout Europe. As a whole, we expect the market to fill the entire gap, but how long will it take for that to happen will depend on the fundamentals that will be released the next days.
To draw up our technical view, we have two short term support areas around 1.0851 and 1.0824, that could cap the downside. Below then, a further retreat towards 1.0783-1.0776 will most likely follow.
On the upside, however, the price should break above 1.0876, where it found resistance two times yesterday, in order to open further room towards 1.0904 area. A breakout above it would confirm that the bulls rejoined the upside trend and more gains would be expected towards 1.0952.
- There are no important headlines due to being released from EU.
- From US, a few housing indicators will come out at 01:00pm and 02:00pm GMT.
Compared to the euro-dollar, the gap was completely filled and not only that, but the reaction from the sellers that followed was well counteracted by the buyers when the price reached 0.9939 support area. So far, it’s difficult to speculate the exact future direction of price. The price action structure suggests that at this point, the sellers are still in control of the market, since the price did not break above 1.0000 area.
If the sellers manage to gain some ground, a retest of 0.9932 and yesterday swing low could follow, while a breakout below it would confirm they stepped in more aggressively and a retest of 0.9906, yesterday low, could follow.
On the upside, the buyers should drive the price towards 0.9991 and 1.0007 area, where we expect the sellers to cap the upside. If they manage to overcome that obstacle and an upside break takes place, we expect the market to move towards the descending trend line.
Cable did not manage to impress either, trading inside a narrow range, as profit taking is still in play following last week huge rally. On the long term, the sterling seems to be favored and more upside gains should come, but short and medium term, there is room for a deeper correction. So far, the buyers are not eager to step in and drive the price higher, so that could be an opportunity for the sellers to gain some momentum.
On the downside, 1.2774 still represents a support area, considering it was tested several times last week, but the overall price action suggests a weakening of the bullish strength around that point, since every reaction has been more and more shallow. We expect a breakout below it and the price to head towards 1.2727 support area. Below, 1.2672 will follow next.
On the upside, the market would need to overcome yesterday high in order to open further ground towards 1.2864 area, while a breakout above it would mean a retest of 1.2904 could take place.
- From UK, Public Sector Net Borrowing will be published at 08:30am.
After consolidating for the first part of the day, the price managed to break below 110.10 key resistance area and closed below it on a daily basis. Taking that into considering, we expect the downside to continue, even though there has been a strong correction towards the area, taking place. Having rejected around 110.10 suggests the sellers are willing to keep the downside trend intact by selling each time the price reaches that level.
On the upside, the market should first break strongly above 110.10 resistance area in order to confirm that the sellers gave up that level and the buyers regained control. If that happens, more gains should be expect towards 110.46, yesterday high.
However, if the sellers manage to keep the price below 110.10, we expect the downside move to resume and a breakout below today low to follow. 109.48 is our next support area while below it, 109.21 will follow and if the price reaches that point, the gap would be filled.
Choppier market and a transition phase seems to be taking place as the relationship to the 20 EMA seems to be changing. Even though the market managed to fill the gap and even post some gains at some point, the sellers stepped in and erased all of them. That could suggest that downside trend could resume in the short term. Buyers would need to overcome yesterday highs in order to change that scenario.
Technically speaking, a strong breakout below 0.7556 would confirm our view and more slides would be expected towards 0.7534 support area. Below it, 0.7514 and 0.7492 should provide support for the price.
On the upside, however, as we mentioned, the price should break above 0.7583 and reach 0.7586 resistance area. Higher above, 0.7609 is another area of interest for the sellers.