Daily Forex forecast analysis 11-07-2017 – 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 11-07-2017 include information on EURUSD, USDCHF, GBPUSD, USDJPY & AUDUSD
The euro-dollar had been trading sideways yesterday, with the price closing around the open level, but thus far we still have the price action located below the 4h chart 20 EMA. We believe that if a break above the 20 EMA will take place, then buyers will try to attack the 1.1660 key resistance area again. US President Trump is on its way to South Korea and any new signs of aggression from the North could add pressure on the US dollar.
On the upside, we have the 20 EMA backed by the 1.1624 resistance level, where sellers could rejoin the bearish trend. If the bulls will manage to overcome that obstacle, we could expect further price movements towards the key resistance area.
If the selling will resume impulsively, yesterday low and 1.1574 weekly low could be under pressure and if a breakout lower takes place, then 1.1531 will be next.
- From EU, Retail Sales figures are due at 10:00 am GMT.
- From US, Consumer Credit Change will be published at 08:00 pm GMT.
The dollar-swiss found resistance around our 1.0018 level, that we’ve mentioned in our yesterday daily forecast. We now have the price action located below the 20 EMA, a situation which had not been seen for a little while. That communicates the bulls were unable to keep pushing the price at the same pace and a corrective structure will continue to develop in the short-term horizon.
As long as the price action remains below the 20 EMA, the sellers will be in control and we expect them to try to breach below the 0.9955 and 0.9939 support level, where buying activity had been seen last week.
On the upside, the EMA and 0.9994 could be a potential new entry point for the sellers, while a breach above that zone will mean 1.0018 resistance, where the price action stalled yesterday, will be under pressure again.
Cable had also managed to gain significant ground yesterday, erasing some of the losses that followed last week’s BOE meeting. The price action managed to break above the 1.3133 resistance it is now hovering around the 1.3174 level. The leg up seems strong enough and it does not look as a corrective move. More upside gains will be expected if the selling interest won’t emerge again.
So far we do not see any sign of selling activity and if the bulls will continue to push the price and manage to overcome 1.3174 resistance, then 1.3225 and 1.3277 could be potential next targets.
On the other hand, if the sellers resume, the price could head towards the 1.3133, previous resistance, now support. 1.3110 and 1.3087 could further cap the downside and keep the weekly gains intact.
- From UK, Halifax House Prices are due at 08:30 am GMT, followed by the NIESR GDP Estimate at 03:00 pm GMT.
Buyers managed to break above the 114.35 key resistance area yesterday in early Asian session, but the downside resumed impulsively, erasing all the gains and ending the day on the negative, with a pin bar forming on the daily chart. That communicates a false break took place and if the upside will be capped below the 114.35, then further selling could follow, pushing the price towards last week lows.
Currently, the price is heading up again quite impulsively and we expect it to go towards the 114.15 and 114.23 resistance levels. Above those two levels, 114.35 follows and we expect heavy sellers to emerge around that area.
If the bearish pressure will resume, 113.76 and 113.58 support levels could be reached and another thing to mention is that if the bearish leg will extend far from the 114.35 key resistance that will signal a strong weakening of the bullish trend.
Aussie managed to rebound yesterday and broke above the 4h chart 20 EMA. In the last few hours the price had retreated lower and we are now very close to the 20 EMA. If the price action will break impulsively below the EMA, then yesterday low will be under pressure and if the bulls will treat the EMA as a support area, new wave of buying will push the price towards last week high.
0.7677 is the first support, backed by the 20 EMA and if the sellers will manage to break lower, 0.7660 and 0.7639, where bulls started to push the price up yesterday, could try to cap the downside.
On the upside, 0.7699 and 0.7719 are short-term resistance level, below the 0.7731, last week high, where selling interest might also emerge.