Daily Forecast: September 22

Filed in euro, Gold, lead, silver, Yen by on September 21, 2010 0 Comments

EURUSD Forecast The EURUSD had a significant bullish momentum yesterday after market react positively on FMOC statement. Although most part of the statement didn’t show significant change from the previous releases, the Fed willingness to “provide additional accommodation if needed to support the economic recovery” triggered risk appetite and push Euro higher. This positive reaction on global recovery could remain stay in the market at least in nearest future and give further support to the Euro. On daily chart below we can see price made a strong breakout above the trend line resistance indicating potential bullish continuation testing 1.3500 region especially if price able to make another break above 1.3333 (August 06 high). Immediate support at 1.3250/00 area. As long as price stay above that area, technical bias remains strongly bullish. GBPUSD Forecast The GBPUSD also had a bullish momentum yesterday after FOMC statement triggered broad Dollar weakness. On h1 chart below we can see price is moving in a new minor bullish channel indicating potential bullish continuation, but still need a clear breakout above 1.5728 to continue the bullish scenario testing 1.5800 even testing 1.6000 psychological level. Immediate support at 1.5586 and the lower line of the minor bullish channel (red). Break below that area could lead us to neutral area in nearest term as direction would become unclear but as long as price still move inside the major bullish channel (white) we are still in bullish phase. USDJPY Forecast The USDJPY had a significant bearish correction yesterday on broad Dollar weakness and now struggling around 84.82 support area. On h4 chart below we have a rounding top formation, which is a bearish reversal pattern especially if price able to break below 84.82 testing 84.00 area even lower. However note that any further Yen appreciation could trigger another intervention by the Japanese government. On the upside, we still need a break above 85.90 to continue the bullish momentum testing 87.00. USDCHF Forecast The USDCHF continued its bearish momentum yesterday, bottomed at 0.9958. On h4 chart below we can see price is moving inside a new bearish channel (red) after violated the bullish channel indicating potential bearish pressure. The bias is bearish in nearest term especially if price able to break below 0.9931 region targeting 0.9870 before testing 0.9730. Immediate resistance at 1.0030 and the upper line of the bearish channel. Break above that area could lead us to neutral zone in nearest term as direction would become unclear but the major scenario remains bearish. Have a great day!

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Daily Forecast: September 22

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