Daily Forecast : May 26

in euro Gold Gold Bullion prices silver by admin — May 25, 2010 7:26 pm | no comments

EURUSD Forecast: The EURUSD attempted to push lower yesterday, bottomed at 1.2177 but whipsawed to the upside and closed significantly higher at 1.2343. We still have the volatility, where price attempted to push lower during Asian and European market but recovered significantly during US session. The bias is neutral in nearest term but we are still in a major bearish scenario. On h4 chart below, the upside correction found a good resistance around 38.2 Fibo retracement. The candle in the circle (which is not complete yet at the time I wrote this comment) could give us a clue for today. If the candle close below the 38.2% area, the bearish scenario could resume re-testing 1.2177 before testing 1.2000 region. On the other hand, if price close above the 38.2% area, further upside correction may resume testing 1.2480 – 1.2500 area. Immediate support at 1.2280 followed by 1.2177. GBPUSD Forecast: Similar to the EURUSD, the GBPUSD attempted to push lower yesterday, bottomed at 1.4259 but recovered significantly during US session, closed at 1.4406. On h4 chart below we can see that price is trapped in range area of 1.4527 – 1.4240 area indicating consolidation after a significant bearish movement. We need a break from that range area to see clearer direction but the main scenario remains to the downside and only a breakout above the range could be a serious threat to the bearish scenario. On the other hand, we need a clear break below 1.4240 to continue the bearish scenario testing 1.4000 psychological area. USDJPY Forecast: The USDJPY also had a volatile movement yesterday, but still trapped in range area of 90.50 – 89.00 indicating consolidation. I am expecting significant break from the range area to see clearer direction and still in wait and see mode. Aggressive traders can short around 90.50 or long around 89.00 with a tight stop loss. USDCHF Forecast The USDCHF attempted to push higher yesterday, topped at 1.1695 but closed significantly lower below 1.1595. The bias is neutral in nearest term as direction is unclear so far, but we are still in the context of major bullish scenario. Immediate support at 1.1500 area. Break below that area could trigger further bearish pressure testing 1.1445 area. Initial resistance at 1.1650. Break above that area could trigger further bullish momentum testing 1.1695 and 1.1750 region. Have a great day!