The upcoming week consists of industrial production publications among other figures. Here’s an outlook for European indicators and an updated technical analysis for EUR/USD.

EUR/USD daily graph with support and resistance lines on it. Click to enlarge:


EUR/USD managed to cling to the uptrend channel, even through Friday’s release of US Non-Farm Payrolls, which came out better than expected. This week is rather mild regarding US releases. Let’s see the European ones:

Read the rest of the EUR USD forecast.

AUDUSD’s upward movement extended to as high as 0.9175 level. Further rise towards 0.9221 previous high is still possible later today, minor consolidation would more likely be seen before breaking above this level. Support is now at 0.9053, a breakdown below this level will indicate that consolidation of uptrend is underway, then deeper decline could be seen to 0.9000 area.



Daily Forex Forecast

GBPUSD remains in downtrend from 1.5997 and the fall extended to as low as 1.5326. Resistance is at 1.5597, as long as this level holds, downward move is expected to continue and next target would be at 1.5200 area. However, a break above 1.5597 will indicate that a cycle bottom has been formed on daily chart and the fall from 1.5997 has completed at 1.5326 already, then the following upward movement could bring price back to 1.5700-1.5800 area.

For long term analysis, GBPUSD is in uptrend from 1.4230. Rise to 1.8000 area to reach next cycle top on weekly chart is expected in next several weeks.



Weekly Forex Analysis

Bias: I can't see that the upside is complete - watch for support at 0.9014 and for a new high

Yesterday's rally came as a surprise. I did see the potential but the extent of the rally has taken me by surprise. I can't even see that it is complete. However, I feel the first move today should be lower and down to the 0.9014 support (max 0.8974-88). From here I look for the uptrend to resume and push back to yesterday's 0.9115 high and while this area should generate a small correction, once complete, should see extension to the 0.9155-84 area. Only above here would threaten the 0.9221 high and possibly higher.

To see this break down we'll need a breach of the 0.8988-0.9014 support area. If seen then there is minor support at 0.8945-55 and then again at 0.8910-20. Observe these in case they generate a correction/reversal. Below there is the 0.8860 corrective low.

Please view the complete analysis at:http://www.fx-forecaster.com/files/T...ecaster106.pdf.

For a full description of how to use the analysis please see the Analysis page of my website. The prior day's set ups for potential trading levels highlighted in the report are available on the Daily Forecast page of my web site in the Trader Package review. (+15 pips)