Daily Forex forecast analysis 10-11-2017 – 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 10-11-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro had been appreciating yesterday, even though there was an important meeting in Catalonia that could mean the independence of the region. The market had priced in correctly the outcome of the meeting, since no independence was proclaimed thus far. However, some though negotiations will take place in the following weeks, but most likely the central government in Madrid will give up and offer better conditions for the region.
Getting back to the technical analysis, the price is located around the 1.1812 resistance level and that zone could be “hot” in terms of selling orders as the price will approach 1.1831 resistance, where other sellers could also step in.
On the downside, we expect the price to continue to float above the 20 EMA, but if a retracement takes place, 1.1803 and 1.1780 area, could act as support and manage to absorb all the selling orders.
- There are no important economic indicators due from EU.
- From US, FOMC meeting Minutes are due at 06:00pm GMT.
The dollar-swiss managed to break below the 4h-chart 20 EMA and had been trading there for 5 candles, or 20 hours, which from our point of view suggests a weakening in the overall bullish trend. As long as the price will continue to float below the 20 EMA, there is a high possibility that the market will retrace further. Just a strong break back above it could signal a new round of strong buying could take place.
If the price will continue to correct higher towards the 20 EMA, we expect it to encounter resistance around the line + 0.9767 level. Sellers could rejoin the downside there, so watch carefully that area. In case that area is breached, 0.9785 swing point will follow then.
On the downside, if the selling pressure will resume and drive the price lower, 0.9746 and 0.9733, where the downside was capped yesterday, could act as short-term support. A break below yesterday low will send the price towards 0.9715.
Cable had been trading higher impulsively since the beginning of the week as you can see from our chart. The move had been pretty strong as we see the price floating above the 1h chart 20 EMA, with just two touches of the EMA. However, it seems like the price had encountered some short-term resistance around the 1.3221 as we currently see the price below the EMA> Looking ahead, if the price will continue to extend lower, we might see a bigger retracement towards the weekly lows, while a break above the EMA will open some new ground for the buyers.
Since the price broke below the EMA and had not done that for a while, that suggests a short-term weakening of the bullish strength. The sellers could encounter support around the 1.3184, while below that level, 1.3150 will follow.
On the upside, buyers will need to build up again and drive the price above the EMA in order to confirm that the move that started at the beginning of the week could extend higher. 1.3221 could be again a resistance point, while if it fails, 1.3248 and 1.3287 could follow.
As we mentioned in our yesterday daily forecast, we’ve spotted that the price had consolidated below the 4h chart 20 EMA, which signal a weakening of the bullish trend. As you can see from our chart, the price had treated the EMA as resistance and started a new leg down breaking the weekly lows. During the Asian session we’ve seen a bullish correction taking place, but as long the price will float below the EMA, the sellers could resume at any time.
So far, it seems like the price had encountered resistance around the 112.45 area, since we see some sellers’ reaction there already. Above that point, the EMA backed by the 112.68 level could act as resistance and manage to cap the upside.
If the price will resume the downside, 112.22 and 111.99, there the selling had been capped yesterday, could act as support, while a breach below yesterday low will open more ground towards 11.60 area.
The Aussie consolidation continued and got stopped around the 0.7790 resistance area that we’ve mentioned yesterday. We expect to see how the price action will continue to evolve around that point as we can see that for the time being, the order flow is quite balanced. Sellers could resume around that area as the consolidation had been weak thus far, but buyers could also build up and continue to push the price higher.
If the buyers will manage to treat the EMA as a support zone and generate new higher highs and higher lows, the price could manage to overcome yesterday high and head towards 0.7818 and 0.7834 resistance levels.
On the other hand, if selling pressure resumes around the EMA, 0.7743 support could be under pressure again. A breakout below last week low will be needed to open more selling ground towards 0.7711 and 0.7680.