Daily Forex forecast analysis 10-24-2017 – 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 10-24-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro continued to weaken yesterday, until the US session, but managed to find support around the level we mentioned yesterday 1.1735. Until the time of writing, the price managed to recover around 40 pips, a decent amount, considering that during the Asian session liquidity is very thin. Looking ahead, the economic calendar will have more indicators from today and the order flow could be influenced by them.
So far, the price action stalled around the 1.1767 resistance level, but looking at the bullish structure prior to it, there is a possibility of a breakout higher. If that will happen, further gains will be expected towards 1.1789 or 1.1804.
On the other hand, if the sellers will manage to drive the price impulsively below the 20 EMA that will confirm the selling pressure resumed and further bearish gains could follow towards 1.1735, yesterday support and 1.1719.
- Markit PMI Composite, Markit Services PMI and Markit Manufacturing PMI are due at 07:30am for Germany and at 08:00am for EU.
- From US, the same PMI indicators are due at 01:45pm.
Dollar-swiss is currently located around the price is had opened the week, after some profit taking took place during the Asian session. The dollar momentum decreased short-term, allowing the swiss franc to gain some ground. However, the price action is still located above the 4h chart 20 EMA, which confirms that buyers are still in control and we should see a strong selling wave below it in order to have a signal that the bullish trend had weakened.
If the retracement will continue to head lower, we expect the 0.9835 and the EMA to act as a support zone, while if they will fail to do that, further selling could drive the price towards 0.9008 and 0.9784.
If the bulls will resume, 0.9854 and then yesterday high could represent short-term resistance level, while if both will fade, 0.9891 level could be next target.
We have no important data due from Switzerland today.
Cable managed to find short-term support around the 20 EMA and it is now trading around this week high, suggesting that there is significant bullish momentum to drive the price higher. As long as the price action will continue to be located above the EMA, there is more upside potential available. Only if the price will manage to break impulsively below it, we could see renewed selling pressure towards last week low.
Thus far, the price is located above the EMA, so bulls should be in control. However, they have encountered some short-term resistance around the 1.3220 level and they will need to breach that zone to open more ground towards 1.3265 and 1.3287.
If the resistance will hold and strong selling will resume, the EMA will stand in front of the sellers. Below it, we should see further bearish gains towards 1.3143 and 1.3090, where we have seen buying activity last week.
Even though the dollar-yen gapped higher at the opening of this week, the price then resumed the downside and is currently trading around the 113.36 level. The downside had been capped by the 20 EMA thus far and we should see some bullish activity in the following hours. On the other hand, a break below the EMA could point towards further weakness of the overall bullish trend and sellers should be in control as long as the price will be located below it.
For now, we have the price above the EMA, so buyers are in control. If the price action will break above the 113.40 resistance, then we should see further gains on the upside that could head towards 113.89 or even towards yesterday high.
On the downside, sellers should manage to break below 113.25 and the EMA to be able to further push the price towards 112.98 and 112.71, where bulls might try to balance the order flow again.
The Aussie had moved sideways below the 4h chart 20 EMA since the beginning of the week and even though there had not been any directional bias, the sellers are still in control, since we do not see any significant bullish reaction so far. As long as the price will be capped by the EMA, we could see some further weakness. On the other hand, a strong bullish break above the EMA could send the price higher.
We currently see the price resuming the downside, and our next support lies ahead around the 0.7799, where the bulls reacted yesterday. A break below yesterday low, will mean sellers could drive the price towards 0.7784 or even lower towards 0.7752.
On the upside, the 0.7628 and the EMA should act as a resistance zone and try to cap the upside, in case the buyers will push the price there. A break above will open more room for the buyers, towards 0.7847 and 0.7875.