Daily Forex forecast analysis 10-06-2017 – 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 10-06-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro resumed the downside yesterday and breached below the 1h chart 20 EMA, after some ECB officials comments and after the US economic figures that came out better than expected. The market will price in a greater probability of a rate hike until the end of the year, as long as economic conditions are improving, so any positive news will boost the US dollar, at least for the short-term horizon.
At the time of writing, we can see a pinbar formed around the 1.1696 support area. If that will be a trigger for additional buying, the price could head higher towards 1.1712 and 1.1728. Further buying could push the price towards 1.1762, very close to the area where the selling begun yesterday.
If the selling pressure will continue below the 1.1696, our next targets lie around 1.1677 and 1.1652, where some bullish momentum might emerge. We expect the area where the price is currently located to provide support.
- From US, NFP and Unemployment Rate are the key economic figures of the day, which are due to being released at 00:30pm GMT.
The US dollar resumed the upside against the swiss franc as well yesterday. We mentioned in our daily forecast that the price had rebounded several times around the 4h chart 20 EMA and that’s what happened yesterday again. Looking ahead, we believe todays’ employment figures from US will play a major key in terms of the future direction of price. The forecasts points towards weaker numbers but we’ll see if that will turn out to be true.
Getting back to the technical analysis, the price managed to break above the 0.9784 resistance and previous weekly high, but so far we do not see any significant continuation higher. 0.9804 and 0.9823 will further cap the upside, if the buyers continue to push the price.
On the downside, if the selling pressure resumes below last week high, 0.9767 and the 20 EMA could act as a support zone in order to absorb the selling pressure. A breach below it will open more ground towards 0.9746 and 0.9733.
- From Switzerland, Foreign Currency Reserves are due at 07:00am GMT.
Cable had been one of the big losers yesterday, as we saw the price slump by almost 140 pips on a daily basis. The sellers continued to push the price lower today, during the Asian session, however, not at the same fast pace. Since the bullish activity is almost nonexistent, the price could manage to extend lower, but in case the sterling will profit short-term, at least a retracement higher might take place.
If the bearish trend will continue to extend lower, we expect it to encounter support around 1.3059 and 1.3029. Below that zone we have the 1.2996 area, where we believe the downside should be capped for a while.
On the upside, if buyers resume, they will encounter resistance around 1.3116 and 1.3155 area. However, we expect the price to continue to float below the 4h chart 20 EMA.
- From UK, Halifax House Prices figures are due at 07:30am GMT.
Dollar-yen also rebounded after reaching the 112.43 support area, due to better that expected Jobless Claims figures from the US. Currently the price is located again above the 4h chart 20 EMA, which improves for the short-term the bullish sentiment. However, we do not expect the price to continue at the same pace on the upside, since the market participants will await for the US employment figures that will be due later today.
If that will be the case, we do not expect the price to go well beyond the 112.91 resistance and even though it is currently located above it, a correction that brakes below and heads towards the EMA is not excluded. 112.68 and 112.53 will follow as support below.
If the price will continue to extend higher, we believe the upside will be short-lived and we expect it to encounter resistance around 113.04 and 113.18 levels.
The Aussie also moved lower yesterday after a breakout below the 4h chart 20 EMA which triggered the selling pressure again. The price had broken below the previously established weekly low around the 0.7784 level and it is now consolidating below it. Since a new low was established, that confirms the selling pressure is still at high points and it could continue further. However, we expect the price to consolidate ahead of the widely expected employment figures.
If the buyers push the price up again, we expect them to encounter resistance around the previously weekly low, which should act as a role reversal level. Above that point, the 4h chart 20 EMA could act again as resistance.
If the selling pressure continues, 0.7711 and 0.7680 could follow then as support and attempt to cap the downside, at least for the short-term.