Daily Forecast: September 27

Filed in euro, Gold, Gold Bullion prices, lead, Yen by on September 26, 2010 0 Comments

EURUSD Forecast The EURUSD continued its bullish momentum on Friday, topped at 1.3494 and closed at 1.3488 after break out above my minor bearish channel indicating potential further bullish scenario especially if price able to make another strong break out ab0ve 1.3500 targeting 1.3700. Note that 1.3500 could be an important and strong resistance area at this phase since it is the 50% Fibonacci retracement of 1.5140 – 1.1876 , so I think we need a clear break above that area to continue the bullish momentum. Another bearish pullback after testing 1.3500 area on Friday is normal and another minor bearish channel could be formed, but overall we are still in strong bullish bias unless price break below the major bullish channel (white). Immediate support at 1.3438 – 1.3400. Break below that area could trigger further bearish pullback testing 1.3310 support area but I still prefer a bullish scenario at this phase. Although there are many who maintain their negative outlook on global recovery progress which should create risk aversion and push the Euro down, price action shows that market still have positive bias after FOMC meeting and some good fundamental data lately. Trade the facts, not the opinions. GBPUSD Forecast As I had expected, the GBPUSD made strong bullish movement after break above 1.5728, topped at 1.5841 and closed at 1.5821. This fact opens the door for further bullish continuation targeting 1.6000 region especially if price make another strong break out above 1.5841. Immediate support at 1.5728 (former resistance). Break below that area could lead us to neutral zone in nearest term but overall we are still in strong bullish phase and I still prefer a bullish scenario for now. USDJPY Forecast The USDJPY was technically a mess on Friday. Price slipped above 84.82, topped at 85.38 but quickly whipsawed to the downside and closed lower at 84.20. The way I see it, there are some forces in the market trying to go against the Japanese government acts to weaken the Yen and this is a very tricky situation. I will stand aside for now. Technically speaking, the bias is bearish in nearest term especially if price able to break below 84.00 re-testing 82.87 region. On the upside we need a consistent move above 84.82 to continue the bullish momentum testing 85.90 region and keep the upside outlook intact. USDCHF Forecast The USDCHF attempted to push lower on Friday, bottomed at 0.9778 but the bearish momentum was limited as price closed higher at 0.9828 and keep moving higher around 0.9858 at the time I wrote this comment. The bias is neutral in nearest term but still within the context of a major bearish scenario testing at least 0.9730 support area. Immediate resistance remains at 0.9931. Break above that area and violation to the upside of the bearish channel could lead us to neutral medium outlook. Have a great day!

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Daily Forecast: September 27

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