Daily Forex Forecast for May 12, 2017
Expectation: Bearish to neutral
Target: 1.0850 to 1.0950
Yesterday, the EURUSD pair remained range bound largely. The pair breached the key support at 1.0850 and moved below this level but later recovered and closed above it. At this point in time, we expect this pair to remain bearish in the near term. The 1.0850 point is an immediate support level for this pair in the near term. If the price drops below this level (and closes below it), then we can expect price to drop further and the next support at 1.0730 could be tested. Alternatively, if price closes above the resistance level at the 1.0910 mark, then we could expect further bullish movement towards the 1.0950 levels. You can aim to buy at the 1.0850 levels, keeping in mind the bearish outlook.
Expectation: Bearish near term
The GBPUSD pair also remained bearish yesterday – the pair hit a low of 1.2848 but later recovered to close at 1.2888, above the key support at 1.2885. This pair is likely to remain bearish or range bound in the near term. The price is likely to test the next support level at the 1.2830 region. You can aim to buy at these levels. This pair currently has a resistance area at the 1.2915 level. If the price closes above this level, then further bullish movement is possible and the price could move towards the 1.2950 levels.
Yesterday, the USDJPY pair was bearish initially and hit a low of 113.45 before recovering to close at 113.85. Our forecast for this pair remains the same at this time – this pair is likely to remain bullish in the near term and could test the 114.50 levels. This pair has a strong support at the 113.50 mark currently – if the price closes below this point, then further bearish movement could be possible and the 112.85 level could be tested. If that happens, then you can aim to buy at the 112.85 level. At the moment though, we expect further bullish movement and this pair could move towards the 114.50 levels.
Expectation: Bullish to neutral
The USDCHF pair remained range bound yesterday. Our forecast for this pair remains the same at this time. This pair is likely to be bullish in the near term and could test the 1.0170 resistance point. You can aim to sell at this level. The 1.0020 point is a support level for this pair. If this mark is breached and the pair closes below this level, then we could see further bearish momentum with price moving towards the 0.9970 point. Meanwhile, we expect further bullish momentum in this pair and expect the price to move towards the 1.0170 mark.