Daily Forex forecast analysis 10-20-2017 – 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 10-20-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro dipper shortly after the rumors of a Catalonia government suspension will be due on Saturday since no answer was provided yesterday on the independence proclamation. However, the US dollar was then under pressure as new highlights from North Korea came out and fears of a new political tension had risen. During the Asian session the dollar gained again significant ground, so we had some wild swings and no clear direction.
Looking ahead, so far we can see the price breaking lower and almost reaching the 4h chart 20 EMA, while it will fail to remain above it, further selling could follow towards 1.1796 and 1.1774 support, where we saw the rebound yesterday.
On the upside, if the buying pressure will resume, we could see the price heading towards 1.1840 resistance or 1.1852 yesterday high. Even if the buyers will overcome those levels, 1.1875 follows and we could see strong selling interest there.
- From EU, A European Council is taking place, so any significant news on Brexit could influence the prices.
- From US, Home Sales figures are due at 02:00 pm GMT.
The swiss franc had managed to gain significant ground yesterday, due to a tough message from the North Korea leader, but as you can see from our chart, the price rebounded sharply in the Asian session today, erased all yesterday losses and even broke above a critical resistance area. Since the buying pressure had been so high, we do not think the price action will simply reverse, so at least a new retest of current daily highs should be seen.
If that will be the case, we believe the price action will head towards 0.9825 and 0.9835, two levels which form a strong resistance area. Above that zone, the 0.9847 current daily high would be next under pressure.
On the downside, the buyers could support the price around the 0.9805 area, while if a breach below takes place, further retracement towards 0.9785 area, backed by the 30 min chart 20 EMA will follow then.
Cable continues to weaken and the fact that the price broke below the 1.3121, signals the buyers have clearly no control over the order flow. Market participants are nervous because the Brexit negotiations are very tough and little progress had been made thus far. Even though there is a strong possibility of a rate hike in the upcoming months from the BOE that is almost priced in, so the market is digesting new information.
Since a breach below the 1.3121 support took place, we expect the market to treat it as resistance, if the price retraces to it again. If the buyers will push the price above it, a continuation towards the 1.3153 and possibly the 4h chart 20 EMA, could be possible.
On the downside, if the selling pressure will persist, 1.3074 could be the next support area where buyers might try to balance the order flow, but if that will also fail, 1.3042, a much stronger support zone will be next.
- From UK, Public Sector Net Borrowing is due at 08:30 am GMT.
The dollar-yen suffered a short dip yesterday, but the downside had been capped by the 4h chart 20 EMA and the buying pressure resumed impulsively during the Asian session. Judging by the current price action development, we expect a breach of the weekly high, located around 113.43 to take place soon. As long as the price action is trading impulsively above the 4h chart 20 EMA, buyers should continue to be in control.
If the bullish pressure will continue to push the price higher, 113.43, weekly high and strong resistance area could be reached. A breakout above it could mean a further continuation towards 113.89 will follow then.
If the selling pressure will resume, we do not think the price action will break below the 20 EMA. Also, until the EMA, we have the 112.83 level, which could act as a pivoting point and bring new buyers in the market.
The Aussie had been trading on the upside yesterday, but today, during the Asian session, the selling pressure resumed quite impulsively and we now have the price located below the 4h chart 20 EMA. If the selling will turn out to be just an exhausted move, then the buyers should manage to drive the price above yesterday high, but if the sellers will treat the EMA as a resistance zone, then further downside potential will follow.
If the bullish pressure will resume, then we expect the price to head towards the EMA and 0.7860 resistance level. If the sellers won’t manage to cap the upside, then further gains could follow towards 0.7875 and 0.7891 levels.
On the other hand, if the sellers will manage to drive the price lower, 0.7834 and 0.7822 could act as support and balance the order flow. 0.7811 follows below them, but given the fact that it is the last day of the week, we should see the buyers managing to absorb the selling pressure.