Daily Forecast for Crosses: May 20

The EURJPY attempted to push lower yesterday, bottomed at 110.85 but whipsawed to the upside and closed higher at 113.80 after rumor about ECB intervention. On h4 chart below we can see price is struggling around the trendline resistance. The bias is neutral in nearest term. Technically I still prefer a bearish scenario but the intervention threat is something I don’t want to ignore. Immediate support at 112.90. Break below that area could trigger further bearish pressure testing 110.85/66 region. Initial resistance at 114.75. Break above that area could trigger further bullish momentum testing 116.20 region.

GBPJPY Forecast

The GBPJPY attempted to push lower yesterday, bottomed at 129.75 but whipsawed to the upside and closed higher at 132.40. On h4 chart below we can see that the upper line of the bearish channel still did a good job preventing further upside correction. Immediate support at 131.50. Break below that area could trigger further bearish momentum re-testing 129.75/89 area. Initial resistance at 133.30. Break above that area could trigger further bullish momentum testing 134.25 area but the main scenario remains to the downside.

AUDUSD Forecast

The AUDUSD continued its bearish momentum yesterday, bottomed at 0.8357 but closed higher at 0.8469 in a volatile market. The bias is neutral in nearest term but from longer term outlook, the scenario is to the downside targeting 0.8200/50 region. Before that, 0.8357 could be tested again today but price already in oversold area so watch out for potential upside correction testing 0.8540/70 area. Break above that area could be a serious threat to the bearish scenario.

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