Daily Forecast for Crosses: December 18

on December 17 2009 9:36 PM

EURJPY Forecast

The EURJPY had a significant bearish momentum yesterday, break below two trendline supports (blue, red). This fact should be seen as bullish failure and a bearish reversal scenario. The bias is bearish in nearest term targeting 126.86 area but we have potential hammer formation as you can see on my h4 chart below, indicating potential upside correction. The candle is not complete yet at the time I wrote this comment. Immediate resistance at 129.00 area. Break above that area should lead us into no trading zone. I think I will stand aside for now.

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GBPJPY Forecast

The GBPJPY had a significant bearish momentum after failed to move consistently above 146.80 area, bottomed at 144.64, closed at 145.27. Price attempted to push lower, hit 143.74 earlier today in Asian session but further bearish pressure was rejected, traded around 144.85 area at the time I wrote this comment. On h4 chart below we can see that price made a false breakdown from the trendline support (red) which potentially trigger upside momentum and the bullish scenario should remains intact especially if price able to break above 144.85 re-testing 146.80 area.

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AUDUSD Forecast

As I had expected, the AUDUSD continued its bearish momentum yesterday, bottomed at 0.8845 and closed at 0.8868. Price attempted to push lower earlier today in Asian session, hit 0.8809 but further bearish momentum was limited as price rebound higher around 0.8874 at the time I wrote this comment. The bias should remains bearish testing 0.8750 even 0.8500 in longer term point of view but CCI about to cross the -100 line up on h4 chart so watch out for potential upside correction testing 0.8915 area. Break above that area should lead us into no trading zone but overall the pressure is more to the downside at this phase.

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