Daily Forex forecast analysis 10-12-2017 – 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 10-12-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro continued to gain ground at a fast pace yesterday, as we can see the impulsiveness of the move on the 4h chart. There are only three red candles in the entire series and each of them could barely cover a few pips. Even though the price action is advancing so quickly on the upside, by looking on the daily chart, you could see a possible head and shoulders patters occurring and now the price is trending towards the top of the shoulder.
If the pattern will manage to materialize, then we expect the price action to begin to weaken around the 1.1897 resistance as we also have the top of the left shoulder located little above that point. Only a strong break above it could open more ground towards 1.1936.
On the downside, the price action could retrace towards the 1.1860 support, which was resistance yesterday and a continuation lower will put pressure on 1.1835 support area. The 20 EMA will follow below that zone.
- French CPI figures are due at 06:45 am GMT. EU Industrial Production figures will follow at 09:00am.
- From US, PPI figures + Continuing Jobless Claims and Initial Jobless Claims are due at 00:30pm GMT.
The dollar-swiss had also been trading lower yesterday, but not at such a fast pace as the EURUSD pair. So far it seems like the price had found some short-term support around the 0.9716 area, as we can see the buyers reacting around that point. Looking ahead, it will be interesting to watch how the price action will manage to evolve as the buyers could begin a new round of buying following the retracement of the last few days.
On the downside, the 0.9716 is expected to act as a support level in the short-term, but in case the selling pressure resumes impulsively, we could see the price action heading towards 0.9704 and 0.9685.
If the buyers will continue to push the price on the upside, the 1h-chart 20 EMA, backed by the 0.9733 could act as a resistance zone. 0.9742 and 0.9755 are located above that area and could bring news sellers to the market.
Cable had been also trading on the upside and the dollar weakened last night following the FOMC meeting Minutes. The committee emphasized that an improvement in the economic conditions and labor market will be necessary for a new rate hike to take place until the end of the year. Taking into consideration the recent weak indicators from US, the dollar lost ground and sterling profited.
As we can see, the price action managed to overcome the resistance area located around 1.3220 and it is now looking to head towards 1.3287 and 1.3314, where we should see at least some profit taking.
On the downside, if the selling pressure resumes, 1.3248 and 1.3220 could act as support levels and try to balance the order flow. The 20 EMA and 1.3199 are located below them and buyers are expected to react around that area as well.
- From UK, BOE Credit Conditions Survey is due at 08:30 am GMT.
The dollar-yen had been consolidating higher for the last 24 hours and so far we see no directional bias. The price had been floating above and below the 1h chart 20 EMA, showing that the choppy trading was in play. Looking at the greater picture, a bearish parabolic structure seems to be building up and that could signal renewed selling pressure could emerge in the short-term and drive the price further below.
If that will be the case, the price action could head again into 112.27 and 111.99 support levels, where we have seen some reactions from the bull side in the last two days. Only a breach below the lather will confirm a continuation towards 111.60 will follow.
On the upside, the 20 EMA and 112.45 area are expected to bring new sellers to the market, while a break above yesterday high will open more buying space towards 112.68 and 112.82 resistance levels.
The Aussie also managed to gain some ground yesterday and today during the Asian session as well. It seems like the buyers managed to build up around the 4h chart 20 EMA, treated it as support and pushed the price action, the main catalyzer being the FOMC minutes which triggered dollar weakness across most of the pairs. Looking ahead, now that the price is trending above the EMA is not a good sign for the sellers as the short-term context had shifted.
As long as the price will trend above the EMA, there could be room for additional gains on the upside and we believe 0.7834 and 0.7860 could act as resistance level in case the price manages to reach them.
On the other hand, if the sellers will resume from the current point, 0.7793 and the 20 EMA could act as support and cap the downside. A strong break below the EMA will be necessary to confirm that the price action will head towards last week low.