Daily forex analysis by ForexCycle

[forexcycle]

USDJPY’s bearish movement from 114.36 extended to as low as 108.81. Near term resistance is at the descending trend line on the 4-hour chart. As long as the pair is below the trend line, the bearish movement could be expected to continue and further decline to test 108.13 (Apr 17 low) support is still possible. Key resistance is at 110.81, only break above this level will indicate that the bearish movement had completed at 108.81 already, then the following upside movement could bring price back into 113.00 zone.

[forexcycle]

GBPUSD remains in the downtrend from 1.3047, the bounce from 1.2634 could be treated as consolidation of the downtrend. Range trading between 1.2634 and 1.2850 would likely be seen in a couple of days. As long as 1.2850 resistance holds, the downtrend could be expected to resume and another fall towards 1.2500 is possible after the consolidation. On the upside, a break of 1.2850 resistance will indicate that the downtrend had completed at 1.2634 already, this could trigger another bullish move towards 1.3280.

[forexcycle]

EURUSD failed to break below the 1.1109 key support and stays in the trading range between 1.1109 and 1.1295, indicating that the pair remains in the uptrend from 1.0569 (Apr 10 low), and the sideways movement in the range could be treated as consolidation of the uptrend. As long as 1.1109 support holds, the uptrend could be expected to resume, and another rise towards 1.1450 is still possible after the consolidation. The key support is at 1.1070, only a break below this level could signal completion of the uptrend.

[forexcycle]

GBPUSD failed to break above 12817 resistance and stays in the trading range between 1.2634 and 1.2817. As long as 1.2817 resistance holds, the price action in the trading range could be treated as consolidation of the downtrend from 1.3047 and further decline to 1.2500 area is still possible after the consolidation. Key resistance is at 1.2850, only a break of this level will indicate that the downtrend had completed at 1.2634 already, then the following upward movement could take price into 1.3300 zone.

[forexcycle]

EURUSD is facing 1.1109 support once again, a breakdown below this level could take price to the key support level at 1.1070. Below this level will confirm that that the uptrend from 1.0569 (Apr 10 low) had completed at 1.1295 already, then the following downward movement could bring price into 1.0800 zone. On the upside, as long as 1.1109 support holds, the fall from 1.1295 could be treated as consolidation of the uptrend, and one more rise towards 1.1450 is still possible after the consolidation.

[forexcycle]

EURUSD moved sideways in the bottom of the trading range between 1.1109 and 1.1295. A clear break below 1.1109 support will indicate that the uptrend from 1.0569 (Apr 10 low) had completed at 1.1295 already, then the pair will find the next support level at around 1.0800. On the upside, as long as 1.1109 support holds, the fall from 1.1295 could be treated as consolidation of the uptrend, one more rise towards 1.1450 is still possible after the consolidation. Resistance is at 1.1295, a break of this level could signal resumption of the uptrend.

[forexcycle]

EURUSD failed to break below 1.1109 support and stays in the trading range between 1.1109 and 1.1295. As long as the pair is above 1.1109 support, the price action in the trading range could be treated as consolidation of the uptrend from 1.0569 (Apr 10 low), and another rise towards 1.1450 could be expected after the consolidation. Resistance is at 1.1295, a break of this level could signal resumption of the uptrend. On the downside, a breakdown below 1.1109 support will indicate that the uptrend had completed at 1.1295 already then the pair will find support at around 1.0800.

[forexcycle]

GBPUSD’s bounce from 1.2589 extended to as high as 1.2759. Further rise to test the resistance of the top trend line of the price channel on its 4-hour chart is possible. As long as the channel resistance holds, the bounce could be treated as consolidation of the downtrend from 1.3047, and another fall towards 1.2450 could be expected after the consolidation. Key resistance is at 1.2817, only break above this level will indicate that the downtrend had completed at 1.2589 already, then the following upside move could bring price into 1.3000 zone.

[forexcycle]

USDCAD continued its downward movement from 1.3347 and the fall extended to as low as 1.2971, facing the important support level of 1.2968 (Jan 31 low). Near term resistance is at 1.3045, as long as this level holds, the downtrend could be expected to continue and next target would be at 1.2800 area. On the upside, a break above 1.3045 resistance will indicate that consolidation for the downtrend is underway, then the following rebound could bring price back into 1.3100 zone.

[forexcycle]

EURUSD moved sideways in a trading range between 1.1290 and 1.1445. As long as the pair is above 1.1290 support, the sideways movement could be treated as consolidation of the uptrend from 1.1118 and further rise towards 1.1600 is still possible after the consolidation. On the downside, a breakdown below 1.1290 support will indicate that the uptrend had completed at 1.1445 already, then the pair will find support at around 1.1200.

[forexcycle]

USDCAD remains in downtrend from 1.3347, the bounce from 1.2859 could be treated as consolidation of the downtrend. Near term resistance is at the top trend line of the price channel on its 4-hour chart. As long as the pair is in the channel, the downtrend could be expected to continue and next target would be at 1.2700 area. On the upside, a clear break above the channel resistance could take price to test 1.3014 key resistance, only a break of this level will indicate that the downtrend had completed at 1.2859 already, then further rally to 1.3100 area could be seen.

[forexcycle]

After touching 1.1450 key resistance, EURUSD pulled back to 1.1390 area, indicating that lengthier consolidation for the uptrend from 1.1118 is needed. Deeper decline could be expected in a couple of days and the target would be at 1.1350 area. However, as long as 1.1312 support holds, the uptrend from 1.1118 could be expected to resume and another rise towards 1.1600 is still possible after the consolidation. Resistance is now at 1.1489, a break above this level could signal resumption of the uptrend.

[forexcycle]

EURUSD is testing the key resistance at 1.1450. A clear break above this level will confirm the double bottom pattern on the weekly chart, then the following long term bullish movement could bring price into 1.2700 zone. As the pair stays above the bullish trend line on the daily chart, the uptrend from 1.0569 could be expected to continue, and next target would be at 1.1600 area. On the downside, a clear break below the trend line support could bring price back to test 1.1109 key support, only a breakdown below this level will indicate that lengthier consolidation for the uptrend from 1.0340 is underway, then the pair will find next support level at around 1.0950.

[forexcycle]

USDCAD remains in the downtrend from 1.3347, the bounce from 1.2540 could be treated as consolidation of the downtrend. Near term resistance is at the downward trend line on its 4-hour chart. As long as the trend line resistance holds, the downtrend could be expected to continue and further decline to test 1.2460 (May 2016 low) support is still possible. Key resistance is at 1.2640, only a break of this level will indicate that the downtrend had completed at 1.2540 already, then the following correction rebound could bring price into 1.2850 zone.

[forexcycle]

GBPUSD remains in uptrend from 1.2589, the pullback from 1.3125 could be treated as correction of the uptrend. Deeper decline to wards the bottom trend line of the price channel on its 4-hour chart is possible in a couple of days. As long as the channel support holds, the uptrend could be expected to resume, and another rise to test 1.3200 resistance is still possible. Key support is at 1.2811, only a breakdown below this level could signal completion of the uptrend.

[forexcycle]

USDCAD’s bearish movement from 1.3347 extended to as low as 1.2483, facing the import support at 1.2460 (May 2016 low). Near term resistance is at the falling trend line on the 4-hour chart. As long as the trend line resistance holds, the downtrend could be expected to continue. Key resistance is at 1.2608, only a break above this level will indicate that the downtrend had completed at 1.2483 already, then the following correction rebound could bring price into 1.2800 zone.

[forexcycle]

Under pressure by the top trend line of the price channel on its monthly chart, AUDUSD pulled back from 0.7989 and moved sideways in a narrow range between 0.7875 and 0.7989. As long as 0.7830 support holds, the sideways movement could be treated as consolidation of the uptrend from 0.7571. Another rise towards 0.8150 is still possible after the consolidation and a break out of 0.7989 resistance could signal resumption of the uptrend. On the downside, a breakdown below 0.7875 support could take price to the next support level at 0.7830, below this level will indicate that lengthier correction for the uptrend is underway, then the following correction pullback could bring price into 0.7750 zone.

[forexcycle]

EURUSD’s bullish movement from 1.1312 extended to as high as 1.1845. Near term support is at the bottom trend line of the price channel on the 4-hour chart. As long as the price is in the channel, the uptrend could be expected to continue and next target would be at 1.2000. On the downside, a clear break below the channel support could bring price back to test 1.1613 support, below this level will indicate that the uptrend is complete, then the pair will find support at around 1.1500.

[forexcycle]

EURUSD stays in a bullish price channel on its 4-hour chart and remains in the uptrend from 1.1312. As long as the price is in the channel, the uptrend could be expected to continue and next target would be at 1.2000 area. On the downside, the price had reached the top of the channel, pullback to the bottom trend line would likely be seen in a couple of days. A clear break below the bottom trend line could bring price to test 1.1613 support, below this level will confirm that the uptrend had completed at 1.1845 already, then deeper decline to 1.1500 area could be seen.

[forexcycle]

USDCAD broke above 1.2575 resistance, indicating that the downtrend from 1.3347 had completed at 1.2413 already. Further rally could be expected in a couple of days and next target would be at around 1.2690, followed by 1.2740. However, the rally from 1.2413 would possibly be correction of the downtrend from 1.3793 (May 5 high), another fall towards 1.2000 is still possible after the correction, and a breakdown below 1.2413 support could signal resumption of the downtrend.

[forexcycle]

EURUSD remains in the uptrend from 1.1312, the pullback from 1.1908 could be treated as consolidation of the uptrend. Near term support is at the bottom trend line of the price channel on its 4-hour chart. As long as the channel support holds, the uptrend could be expected to continue and next target would be at 1.2000 area. On the downside, a clear break below the channel support could bring price back to test 1.1650 key support, below this level will indicate that the uptrend from 1.1312 had completed at 1.1908 already, then the pair will find next support at the bullish trend line on the daily chart.

[forexcycle]

EURUSD rebounded from 1.1728 after touching the bottom support trend line of the price channel on its 4-hour chart, indicating that the pair remains in the bullish movement from 1.1312. Key support is now at 1.1728, as long as this level holds, the bullish move could be expected to continue and next target would be at 1.2000 area. On the downside, a breakdown below 1.1728 support will indicate that the bullish movement had completed at 1.1909 already, then the pair will find support at bottom of the price channel on its daily chart.

[forexcycle]

GBPUSD is facing the bottom support trend line of the price channel on its 4-hour chart. A clear break below the channel support will indicate that the uptrend from 1.2589 had completed at 1.3267 already, then the following bearish movement could bring price to test 1.2811 key support. On the upside, as long as the channel support holds, the fall from 1.3267 could be treated as consolidation of the uptrend, and another rise towards 1.3300 is still possible after the consolidation.

[forexcycle]

AUDUSD extended its downside movement from 0.8065 to as low as 0.7838 after failing in the attempt to break above the bearish trend line resistance on its 4-hour chart. As long as the price is below the trend line, the downtrend could be expected to continue and next target would be at 0.7800 area. There is a key resistance located at 0.7910, only a break of this level will indicate that the downtrend is complete, then the following bullish movement could bring price back to test 0.8065 previous high resistance.

[forexcycle]

GBPUSD moved sideways in a narrow range between 1.2939 and 1.3030. As long as 1.3030 resistance holds, the sideways movement could be treated as consolidation of the downtrend from 1.3267, and further decline towards the bullish support trend line on the daily chart is possible after the consolidation. On the upside, a break of 1.3030 resistance will indicate that the downtrend had completed at 1.2939 already, then the correction rebound could bring price back into 1.3120 zone.