Daily Forex forecast analysis 09-08-2017 – 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 09-08-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro surged on the upside yesterday, after the ECB Press Conference, since the President Mario Draghi mentioned that a decision on the asset purchases program will probably be taken in October. Even though he did not tried to give too many hints, it looked obvious that the institutions what’s to begin the tapering, thus triggering bullish momentum on the pair. During the Asian session, also, the price managed to reach new weekly highs.
At the time of writing, the price seems to be reaction towards the 1.2088 area, which is considered our first resistance level. If a breakout above it takes place, we expect further gains to follow towards 1.2133 area.
On the downside, sellers should have limited impact, since the buyers are driving the order flow impulsive and any significant bearish leg could be treated as a buying opportunity. 1.2059, 1.2022 followed by 1.1979 are expected to act as support areas.
- For Germany, Imports, Exports and Trade Balance figures are due at 06:00am GMT.
Dollar-swiss sunk towards new weekly lows, due to the negative correlation with the EURUSD and also, due to US President Donald Trump recent comments, who mentioned that a military intervention in North Korea is not excluded. Safe havens benefited again during the Asian session as the move does not look at the moment as it will stop. Even though a correction might take place, the bias still remains towards the sell side.
At the time of writing, the price managed to stall around 0.9427 area, which managed to provide some short-term support. If the impulsive selling move will extend lower, we expect it to head towards 0.9394 and 0.9375 support levels.
On the upside, buyers should have limited impact on price. However, if a correction takes place, sellers should rejoin the trend around 0.9461. Above it, 0.9493, backed by the 1h chart 20 EMA, could cap the upside then.
Cable continues to head on the upside impulsively and you can notice a nice parabolic structure that is still developing on the 4h chart. The market is continuing to trade above the 4h chart 20 EMA and since the line had not been touched for a few days, that confirms the bulls are driving the order flow impulsively and the sellers are overwhelmed by their force. More upside gains might follow as long as the dollar will be under pressure.
At the time of writing, the price is heading towards 1.3120 resistance. In case a breakout above it will take place, we expect 1.3206 and 1.3251 to be reached. Looking at the current price action it looks like the buyers will put pressure the weekly highs.
On the downside, we expect sellers to have limited impact and the buyers to treat every leg down as an opportunity to get back into the market. Around 1.3116 and 1.3081, followed by 1.3058, we should see reactions from the buyers.
- From UK, Industrial Production and Manufacturing Production figures are due to being released at 08:30am GMT.
Dollar-yen had also broke on the downside impulsively, following President Trumps’ comments. Looking at the 4h chart, we can see that the leg down has only red candles. That’s communicating the sellers where heavily in control and the buyers were almost nonexistent, even though the price action was heading towards a strong support zone. Given the impulsiveness of the move, further downside gains might follow in the short-term.
Given the fact that the buyers had not been able to have a reaction thus far, further selling gains are expected. We believe the market will continue to head towards 107.46 and 106.86 area, where it might encounter some short-term buying pressure.
On the upside, 108.06 and 108.30 area should provide some short-term resistance, if reached, while a breakout above them will mean a further continuation towards 108.44 and the 4h chart 20 EMA are next.
The Aussie broke on the upside and made a fresh weekly high a few hours earlier. Since the market managed to break above 0.8067 key resistance and weekly high that confirms the buyers are willing to drive the price upwards and the sellers had very limited impact for now. We expect the buyers to continue to push the price upwards after the break, even though a pullback might take place, the bias remains towards the bull side.
If the sellers won’t be able to balance the order flow, the buyers will continue to push the price upwards and we expect them to continue on the way up towards 0.8146 and 0.8235, where sellers are expected to have a greater impact.
On the downside, a retracement towards 0.8067, key role reversal level is not excluded and we expect buyers to react to it, also due to the fact that the 4h chart 20 EMA is also located there and is acted as support in the recent time.