Daily Forex forecast analysis 10-05-2017 – 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 10-05-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro-dollar had been hovering around the 1.1756-1.1762 area, for a decent amount of time and it seems like the market awaits tomorrow’s key employment data that is scheduled to be released from the US. So far, bullish activity had not been impulsively, which shows that the sellers are still in control in the long-run, but given the fact that the current moves were generated by low liquidity, the employment data could be a game changer.
If the buyers will manage to overcome the consolidation area mentioned above, we expect yesterday high to be under pressure and if it fades, 1.1804 and 1.1829 could follow as resistance points next.
On the downside, if the consolidation area will be breached by the sellers, further slides might follow towards 1.1728 and 1.1712, two key swing points, where buying activity could rebound, at least for the short-term.
- At 00:30pm, US Trade Balance, Continuing Jobless Claims and Initial Jobless Claims are due. Factory orders will follow at 02:00pm.
We mentioned in our yesterday daily forecast that the 4h chart 20 EMA had been managing to cap the downside for a decent amount of time and buying pressure could resume around it. As you can see, the buyers managed to drive the price pretty nicely and now it is trading above the 20 EMA. Looking ahead, since the price continues to find support around the 20 EMA that confirms the buyers are still in control and we should see some further gains on the upside.
If that happens, we expect the price to head towards 0.9767 and 0.9784, where the current weekly high is located. A break on the upside will first communicate that 0.9804 resistance and probably more upside gains will follow.
If the selling pressure resumes, the 20 EMA could act again as support if reached, while if a break below it and below yesterday low will take place, further slides might follow towards 0.9695 and 0.9680.
- From Switzerland, Consumer Price Index figures are due at 07:15am GMT.
Cable continued to consolidate below the 4h chart 20 EMA, which confirms that the buyers managed to have only a limited impact on the price and thus the sellers are being in control of the order flow for now. Looking ahead, since the bullish activity had been weak, the sellers could potentially attempt a breakout below the current weekly lows and extend the bearish trend further.
Recently the price had found short-term support around 1.3230, an area which capped the downside yesterday as well. If it will fail to support the price, further slides could follow towards 1.3181 and 1.3147.
On the upside, however, if 1.3230 manages to provide enough support, the price could head again towards 1.3269 and 4h chart 20 EMA. Sellers could rejoin the trend there, but if the price breaches above that area, 1.3288 and 1.3312 could follow.
The dollar-yen had a pretty choppy activity yesterday, as we saw the price tumbling in the first half of the day, only to resume on the upside impulsively, during the Asian session. At this point in time, the price is in a consolidation phase and we suspect a double top formation might be forming right now. The neckline is around 112.43 and a breakout below it will confirm our assumption and will mean the sellers will further drive the price lower.
Until then, the price will have to breach both 112.68 and 112.53 support levels. At the time of writing, the price is hovering around the former and so far the activity had been weak, due to low liquidity in the Asian session.
If the buyers will manage to push the price higher, that could mean the 112.91 resistance will be under pressure again and if it fails to cap the upside, further gains might follow towards 113.05 and 113.18 levels.
The Aussie spent a short period above the 4h chart 20 EMA and given the fact that the market had been trending lower for three days in a row, it seems like the sellers saw the bullish retracement as a new opportunity to step in and drive the price action lower. At the time of writing, the price is trading again below the 20 EMA and if the downside will extend further, we expect current weekly lows to be put under pressure.
If that will be the case and sellers will continue to push the price lower, 0.7807 and 0.7784, current weekly low could be under attack and if they will fail to provide enough support, the bearish trend could extend towards 0.7743 support.
If the buyers manage to accumulate strong enough and push the price impulsively above the 20 EMA, that could signal a continuation above current weekly highs might be next and the price could head towards 0.7882 and 0.7907.