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Technical Analysis For major Pairs | ForexGen

EURUSD Outlook

After hit the 6 month low on Tuesday, EURUSD was sharply corrected to the upside yesterday. The pair topped at 1.4776, closed lower at 1.4715 and traded higher early today in Asian market at 1.4770 at the time wrote this comment. We have a bullish channel on hourly and 4h chart. CCI just cross 100 line up on 4h chart suggesting a another potential minor bullish correction. My model goes mixed with neutral bias in nearest term, but we still on bearish outlook in longer term. Immediate resistance is seen at 1.4835 followed by 1.4870. Initial support at 1.4690.

GBPUSD Outlook

The GBPUSD upside correctional momentum was limited yesterday. The pair topped at 1.8488 before whipsawed to the downside and hit the bottomed at 1.8284 and closed at 1.8342. We are still in bearish scenario in longer term, but we might have another upside correction in nearest term. My model is mixed with neutral bias. Immediate resistance is seen at 1.8405 followed by 1.8455. Initial support at 1.8315. CCI just cross -100 line up on 4h chart suggesting another potential bullish correction.

Today's Outlook for USDJPY & USDCHF | ForexGen

USDJPY Outlook

Yesterday the USDJPY attempted to move lower, bottomed at 108.70 before whipsawed to the upside, topped at 109.89 and closed at 109.53. My model goes mixed with neutral bias. Immediate support is seen at 109.20. Initial resistance at 109.92. CCI in neutral area in all 3 time frames (hourly, 4h, daily).

USDCHF Outlook

The USDCHF downside correction seemed limited yesterday. The pair bottomed at 1.0915 but closed higher at 1.0972. I am expecting a ranging market between 1.1023 and 1.0914 today. We need a breakout to find a clearer direction. CCI in neutral area on daily chart.

Trade Desk Thoughts - Japanese Core CPI | ForexGen

Japanese Core CPI Actual 2.4%, Expected 2.3%, Previous 1.9%

Release Explanation: CPI measures the average price of a fixed market basket of goods and services purchased by consumers, and therefore give an overall read of inflationary pressures. It is the most widely used inflation indicator of Central Banks, institutions, and Governments. It is used to calculate cost of living numbers for Government programs. Each regional Central Bank will have their own CPI target rate, and each will differ in line with the way they individually want to control the aspects of their own economies.

Trade Desk Thoughts: The Japanese core consumer price index rose to 2.4 percent on the year. This is the first time in more than a decade that Japans inflation rate exceeded 2 percent. Companies have been passing on higher commodity prices to consumers and this has been a deterrent to their spending, weakening the overall economy, which is on the brink of a recession.

Forex Technical Reaction: The yen is currently entangled in its 20 day SMA as it has been for the past seven trading days. The pair has also failed to break above R1 or below S1 for the past four days

Dollar Slightly Weaker | ForexGen

Currency pairs have been quiet during the Asian session, with the dollar weakening slightly against the other major currency pairs. Activity will pick up as the European session gets into full swing and we head toward the U.S. open

The Euro (Eur/Usd) has strengthened since the start of the new trading day, gaining approximately 40 pips and trying to break above the 1.4750 level. Activity in the pair will likely increase as we head into the final European session of the week and traders anticipate the release of euro-zone CPI estimate and the unemployment rate.

The Swissy (Usd/Chf) has moved lower as the dollar weakens slightly in the broad market. The swissy, which is a good indicator of dollar strength/weakness, has dropped 30 pips since the new trading day began and is currently testing the 1.0950 level.

The Cad (Usd/Cad) enters the European session unchanged from where it began the new trading day after gaining approximately 50 pips yesterday. Oil prices dropped, hurting the Canadian dollar, after the IEA said it would tap strategic stockpiles if Tropical Storm Gustav damages production facilities in the Gulf of Mexico. The pair is trying to move higher but the 20 day simple moving average is proving to be strong resistance.

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