Mon, 25th of May, 2009

By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook

The EURUSD continued it’s bullish momentum on Friday. The pair topped at 1.4049 and closed at 1.4000. On hourly chart below we have a valid bullish channel indicating strong bullish momentum during last week movement. Immediate resistance is seen at 1.4050. Break above that area could trigger further bullish momentum targeting 1.4173. However CCI in overbought area and heading down on h4 chart so watch out for a potential downside rebound testing 1.3950. Break below that area could lead us into no trading zone and could trigger further bearish correction towards 1.3825 area.

EURUSD Daily Supports and Resistances:

  • S1= 1.3909
  • S2= 1.3818
  • S3= 1.3748
  • R1= 1.4070
  • R2= 1.4140
  • R3= 1.4231
  • GBPUSD Outlook

    The GBPUSD had a moderate bullish momentum on Friday. I have showed you the “hanging man” formation on daily chart which should be a potential warning about bullish exhaustion and some minor bearish correction. On hourly chart below we also have a rising wedge formation which also suggesting a potential bearish reversal/correction scenario if the wedge violated to the downside. I think we are in no trading zone in nearest term but remain in bullish mode in medium term. Immediate support is seen at 1.5850 followed by 1.5780 area. CCI about to cross the 100 line down on both hourly and h4 chart suggesting a potential downside pressure.

    GBPUSD Daily Supports and Resistances:

  • S1= 1.5791
  • S2= 1.5678
  • S3= 1.5603
  • R1= 1.5979
  • R2= 1.6054
  • R3= 1.6167
  • USDJPY Outlook

    The USDJPY was corrected higher on Friday. On hourly chart below we can see that the bullish correction happened after “inverted hammer” formed during bearish momentum. This should be a warning of potential further upside correction. I think we are in no trading zone in nearest term. Immediate resistance is seen at 94.89 (Friday’s high). Break above that area could trigger further bullish correction. Initial support at 93.80/50 area. CCI about to cross the -100 line up on daily chart suggesting a potential upside pressure.

    USDJPY Daily Supports and Resistances:

  • S1= 94.12
  • S2= 93.45
  • S3= 93.07
  • R1= 95.17
  • R2= 95.55
  • R3= 96.22
  • USDCHF Outlook

    As I had expected, the USDCHF continued it’s bearish momentum on Friday. The pair hot my bearish target at 1.0810 and closed at 1.0845. However we have hammer on h4 chart below which should be a potential warning of upside correction. The bias is is neutral in nearest term but remains bearish in medium term. Immediate resistance is seen at 1.0850 – 1.0900 area. Break above that area could trigger further bullish correction. Initial support at 1.0810 (Friday’s low). Break below that area could trigger bearish continuation towards 1.0740 area. CCI just cross the -100 line up on hourly chart suggesting a potential upside rebound.

    USDCHF Daily Supports and Resistances:

  • S1= 1.0791
  • S2= 1.0738
  • S3= 1.0666
  • R1= 1.0916
  • R2= 1.0988
  • R3= 1.1041
  • Have a great day!