Wednesday, January 27, 2016

EUR recovers a bit but the outlook is still bearish

FOREX forecast 25.01-29.01.2016EUR has started the week with small recovery from Friday's drop, however the future expectetions are for more downside as the ECB is ready to act again in March. If ECB anounces more stimilus i expect the EUR to drop below 1.000 and the process to continue through the rest of the year, reaching 0.96-0.94 area. Daily EUR chart is mixed with some upside potential recovery, but the H4 is definitely bearish and the first resistance is 1.0830, followed by 1.0860 and reversal is possible only above 1.0910. You may sell at first two resistances with no more than 15 pips SL or sell below 1.0800.
GOLD uses 1094.00  as support inside Daily negative Ichimoku and as we are above that support we may attack 1114.00 level which is the next important resistance. Supports are at 1087 and 1076, further drop is unlikely for now, as break above 1135 is also unlikely.
NZD is still trying to stay above 0.6490 as it is inside a H4 negative Ichimoku cloud. For now the Senkou Span B price acts as price limiter at 0.6530. Even if the price level is broken it won't be for long and the price will return back to 0.6500. this process seem to continue for the next 2-3 days.
AUD is in a recovery mode, for now the area 0.7060-0.7080 blocks further upside but once above we shall target 0.7140-50. Fail at either of these two resistance areas will trigger a fresh downside wave.
JPY lost some positions last Friday when some players prefer to take profit. This put the pait into a recovery mode above 118.40. However the recovery is limited by 119.00 and 119.70 resistances. And while the first one seems easy to break i am sure that the second one will not give up so easy. You may sell at the second one in case the first is broken. Support is 117.70.
GBP produced a long legs candle on Weekly, which means the market is confused what to do next. In this situation it is more likely some bears to tae part of their profit which will bring the price to 1.4490-1.4500 again. Further recovery is less possible because then these same bearsh will sell again. But for now i expect some more recovery.
RUB returns some lost positions due to massive profit taking since 86.00 has been reached. The price then dropped almost 10 USD to 76.00. Below 79.00 more profit taking is possible, but once above 80.70 upside will be restarted. Sideways trade is possible between 78.90 and 80.10.

From: http://www.fxstreet.com/analysis/todays-forex-forecast/2016/01/25/