Daily Forex Forecast August 23, 2017

EURUSD:

Expectation: Bullish to neutral

Target: 1.1825

Recommendation: Buy, with a target of 1.1825

Yesterday, the EURUSD pair moved lower and hit a low of 1.1745. Trend analysis indicates that this pair will remain bullish in the near term and the price should soon close above the 1.1825 resistance levels. Currently, the 1.1650 point is the key 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 1.1825 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 1.1910 resistance levels. You can aim to buy with a target of 1.1825.

GBPUSD:

Expectation: Bearish to neutral

Target: 1.2750

Recommendation: Sell, with a target of 1.2750

Yesterday, the GBPUSD pair moved lower and hit a low of 1.2811. 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 1.2750 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 1.2700 levels. You can aim to sell with a target of 1.2750. Trend analysis indicates that this pair currently has a resistance area at the 1.2850 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 1.2915 levels. If price crosses the 1.2850 levels, then you can buy with a target of 1.2915.

USDJPY:

Expectation: Bearish to neutral

Target: 108.70

Recommendation: Sell, with a target of 108.70

The USDJPY moved higher yesterday and hit a peak of 109.64. 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 strongly 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 109.82 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: 0.9580

Recommendation: Sell, with a target of 0.9580

Yesterday, the USDCHF moved higher and hit a peak of 0.9688. This pair is likely to be bearish in the near term and price could test the 0.9580 to 0.9550 support levels again. You can aim to sell with a target of 0.9580. 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 0.9580 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 and later, the 0.9450 levels.