siroffi: EURUSD Daily Forecast: May 16

FXOpen - Forex Analytics

EURUSD Daily Forecast: May 16

May 16, 2011 at 6:37 AM

EURUSD Forecast
The EURUSD continued its bearish momentum on Friday, bottomed at 1.4065 and hit 1.4047 earlier today in Asian session. The bias remains bearish in nearest term testing 1.4000 key support area. A clear break below that area could trigger further bearish pressure testing 1.3800 â€" 1.3700 area this week. Immediate resistance at 1.4123 â€" 1.4150. A clear break above that area would lead us to neutral zone in nearest term testing 1.4200 but overall my short/medium term technical bias remains strongly to the downside and no sign of potential recovery for the single currency so far. CCI remains in negative territory on hourly, h4 and daily chart suggests a bearish view.

Daily Forecast for Crosses: May 16

May 16, 2011 at 6:32 AM

EURJPY Forecast
The EURJPY continued its bearish momentum on Friday, fell below 114.00 but still struggling around that area so far. The bias is bearish in nearest term especially if price able to make a clear break below 114.00 targeting 112.05. Immediate resistance at 114.50. A clear break above that area would lead us to neutral zone in nearest term testing 115.50 but overall I still prefer a bearish scenario at this phase.

GBPJPYÂ Forecast
The GBPJPY continued its bearish momentum on Friday but bounced a little bit higher earlier today in Asian session and hit 131.18 after found a support around 130.20. The bias is neutral in nearest term and price also still trapped in a range area. I still prefer a bearish scenario but need a clear break below 130.20 to continue the bearish pressure testing 127.77. Immediate resistance at 131.55 followed by 132.30.

AUDUSD Forecast
The AUDUSD continued its bearish momentum on Friday, fell below 1.0540 and struggling around that area now. The bias is bearish in nearest term especially if price able to move consistently below 1.0540 targeting 1.0440 â€" 1.0388 support area. Immediate resistance at 1.0620. A clear break above that area would lead us to neutral zone in nearest term but as long as price stays below 1.0700 and the trend line resistance (white) my short/medium outlook remains more to the downside with potential medium bearish target around 1.0200.

GBPUSD Daily Forecast: May 16

May 16, 2011 at 6:26 AM

GBPUSDÂ Forecast
The GBPUSD continued its bearish momentum on Friday, bottomed at 1.6145 but still unable to move consistently below 1.6164 support area so far. The bias remains bearish in nearest term especially if price able to make a clear break below 1.6164 testing 1.6000 â€" 1.5970 key support area. Immediate resistance at 1.6230/50. A clear break above that area could lead us to neutral zone in nearest term testing 1.6300/50 resistance area but overall I still prefer a bearish scenario at this phase.

USDJPY Daily Forecast: May 16

May 16, 2011 at 6:23 AM

USDJPY Forecast
The USDJPY made another volatile but indecisive movement on Friday. The bias remains neutral in nearest term as price is moving in a sideways mode. On daily chart below we can see the bearish momentum since the fall from 85.51 found a support at 61.8% Fibonacci retracement of 76.21 â€" 85.51 around 79.80 and the trend line support. We also have a hammer candle stick formation which stopped the bearish momentum. We need a clear break below the trend line support and 79.80 to continue the bearish scenario. As long as price stays above 80.85 the intraday technical bias remains more to the upside, but also need a clear break above 81.33 to continue the bullish momentum testing 82.00 resistance area. Hourly CCI remains in a bullish territory while h4 and daily in a neutral zone.

USDCHF Daily Forecast: May 16

May 16, 2011 at 6:17 AM

USDCHF Forecast
The USDCHF continued its bullish momentum on Friday and now traded above 0.8900 suggests further bullish correction continuation testing 0.9000 in nearest term. On the downside, another move back below 0.8900 would lead us to neutral zone in nearest term as direction would become unclear but as long as price stays above 0.8779 we are still in a bullish phase which started after the breakout above the bearish channel and I still prefer a bullish intraday outlook at this phase.

EUR/USD Weekly Review 15 May 11

May 15, 2011 at 12:49 PM

Simultaneous Release at
TheGeekKnows.comÂ Learn Forex Trading and view Daily EUR/USD Reviews.

Good day forex trading koalas.

In the previous EUR/USD weekly review, we noted that the bullish momentum had come a long way and technically a bearish correction is probably due. The little resistance the lower trendline provided was an indication of a strong bearish sell off. If 1.42 is breached, we can expected lower regions to be hit for the EUR/USD.

Looking at the EUR/USD chart above, we can see a continuation of the bearish correction. Technically this is a strong momentum as the currency pair slices past historically strong support regions such as 1.44 and 1.42. If the 1.4 line is broken, we are probably entering into a new bearish phrase.

This week gave us a slight hesitation in the early week. As investors and traders pause to make sense of the sharp dip in the EUR/USD, the currency pair resulted in a ranging pattern. However speculations of more problems regarding Greece took itâ€™s toil in midweek and the support broke. There were also concerns regarding the slowing down of Asianâ€™s economies and sentiments took a big hit. The reason is because many investors and economists believe that the current global economic rebound is largely due to Asiaâ€™s spectacular growth and hence any slowdown may derail the current developments.

***

Taking clues from the technical indications, the current strong bearish correction suggests a strong sentiment break down. Many investors, traders and speculators are probably exiting their bullish position on the EUR/USD currency pair.

Sentiment is a strong market mover. As the balance tips over, many on the sidelines will take notice and contribute to the momentum. The main market worries now are probably

The Euro Zone deficit crisis. In particular latest speculations regarding the Greece break away from the Euro Monetary Union and the risk of a default. Furthermore Portugal was reported to have slipped into a recession.
The apparent slow down of the Asian economies. Recently China raised itâ€™s bank reserve requirements again. This is the fifth time in the year.

Next week is an important week with more crucial economic data due. We have the likes of the US TIC Long-Term Purchases which provides insights to the confidence towards the American economic and the German ZEW Economic Sentiment. Germany is the largest economy of the Euro Zone.

Trade Safely.

Related Forex Articles from the Koala Forex Training College.

READ more Forex Articles and Daily EUR/USD Reviews by The Forex Koala at
TheGeekKnows.comÂ Learn Forex Trading and view Daily EUR/USD Reviews.

EURUSD Weekly Summary: Bullish weekly outlook threatened as bearish continues

May 14, 2011 at 5:58 AM

The EURUSD continued its bearish momentum this week, bottomed at 1.4065 and closed at 1.4115 on Friday. The Euro failed to continue the bullish outlook which led by the breakout above the trend line resistance on April and now slipped back below the trend line resistance as you can see on my weekly chart below and price is now testing Aprilâ€™s low at 1.4061. A clear break below 1.4061 â€" 1.4000 key support area could trigger further bearish outlook testing 1.3782 which is the 38.2% Fibonacci retracement of 1.1875 â€" 1.4939. Immediate resistance at 1.4200 followed by 1.4440. As long as price moves below 1.4440 my short/medium technical bias remains to the downside.

Have a great weekend and see you guys next week.

EURUSD Daily Forecast: May 13

May 13, 2011 at 6:01 AM

EURUSD Forecast
The EURUSD was volatile but indecisive yesterday. Price attempted to push lower, bottomed at 1.4123 but whipsawed to the upside, topped at 1.4276 but traded lower and hit 1.4183 earlier today in Asian session. The bias is neutral in nearest term with potential range area between 1.4250/80 â€" 1.4123. Since the failure of the falling wedge bullish scenario as you can see on my hourly chart below, I still prefer a bearish intraday outlook, still testing 1.4000 support area. Immediate support at 1.4171. A clear break below that area would change the intraday bias to bearish retesting 1.4123 and might give us an early indication to another bearish attempt testing 1.4000. On the upside, immediate resistance remains around 1.4250/80. A clear break above that area could trigger further upside pullback testing 1.4350 â€" 1.4420 resistance area.