Daily Forex Forecast August 21, 2017

EURUSD:

Expectation: Bullish to neutral

Target: 1.1800

Recommendation: Buy, with a target of 1.1800

Last week, the EURUSD pair moved lower and hit a low of 1.1662 before moving up and closing at 1.1761. Trend analysis indicates that this pair will remain bullish in the near term and the price should soon close above the 1.1800 resistance levels. Currently, the 1.1650 point is the immediate support level for this pair. If the price drops below this level (and closes below it), then we can expect the bearish trend to resume and price to drop further and test the 1.1600 levels. The 1.1800 mark is a resistance level for this pair. If the price crosses this resistance level and closes above it, then the bullish trend will strengthen and price could test the 1.1850 to 1.1910 resistance levels. You can aim to buy with a target of 1.1800.

GBPUSD:

Expectation: Bearish to neutral

Target: 1.2865

Recommendation: Sell, with a target of 1.2865

Last week, the GBPUSD pair moved lower and hit a low of 1.2831 but stayed above the key support at 1.2865. Our forecast for this pair remains unchanged. Looking at the trend lines, it is clear that this pair is currently in a bearish to neutral phase. This pair has a support at the 1.2865 region. If the price drops below this level (and closes below it), then we can expect the trend to turn strongly bearish and price to drop further and test the 1.2750 levels. You can aim to sell with a target of 1.2865. Trend analysis indicates that this pair currently has a resistance area at the 1.2915 levels. If the price closes above this level, then the trend would turn bullish, further bullish movement would be possible and the price could move towards the 1.3000 levels, and later towards the 1.3125 region. If price crosses the 1.2915 levels, then you can buy with a target of 1.3000.

USDJPY:

Expectation: Bearish to neutral

Target: 108.70

Recommendation: Sell, with a target of 108.70

The USDJPY moved lower last week and closed at a low of 109.19. Trend analysis indicates that this pair is likely to remain bearish or range bound in the near term and could test the 108.70 support levels. This pair has a support around the 108.70 region. If the price closes below this point, then the trend will again become bearish, further downward movement would be possible and the 108.00 level could be tested. You can aim to sell with a target of 108.70. Currently, the 109.70 area is a resistance level for this pair. If this level is breached and the pair closes above this point, then the trend would become strongly bullish and price could test the 110.50 level again.

USDCHF:

Expectation: Bearish to neutral

Target: 0.9600

Recommendation: Sell, with a target of 0.9600

Last week, the USDCHF hit a peak of 0.9765 but moved lower and closed at 0.9647. This pair is likely to be bearish in the near term and price could test the 0.9600 to 0.9550 support levels again. You can aim to sell with a target of 0.9600. The 0.9700 level is the immediate resistance area for this pair currently. If the price closes above this level, then the trend will turn strongly bullish, further bullish movement would be possible and the price could move towards the 0.9765 levels. The 0.9620 level is the immediate support area for this pair. A clear break below this area would signal that the trend is bearish again and price could then drop towards the 0.9550 levels.