Daily Forex Forecast for May 19, 2017
Expectation: Bearish near term
Yesterday, the EURUSD pair was bearish and hit a low of 1.1075. We expect this pair to remain bullish in the longer term and the price should move towards the 1.1185 mark. However, in the near term, this pair should be bearish or range bound for a while. The 1.1080 point is an immediate support level for this pair in the near term. If the price stays below this level (and closes below it), then we can expect price to drop further and the next support at 1.1020 could be tested. You can aim to buy at the 1.1020 levels. Alternatively, if price closes above the resistance level at the 1.1185 mark, then we could expect further bullish movement towards the 1.1300 levels.
Expectation: Bullish to neutral
The GBPUSD pair was volatile yesterday – it breached the 1.2985 resistance and hit a peak of 1.3047 before dropping lower and closing at 1.2941. This pair is likely to remain bullish or range bound in the near term. This pair currently has a resistance area at the 1.2985 level. If the price closes above this level, then further bullish movement is possible and the price could move towards the 1.3050 levels. The pair has a support at the 1.2930 region. If the price drops below this level (and closes below it), then we can expect price to drop further and the next support at 1.2880 could be tested. You can aim to buy at these levels.
The USDJPY pair was range bound yesterday. This pair is likely to remain bearish or range bound in the near term and could test the 110.00 levels. You can aim to buy at these levels. If the 110.00 levels are breached and the pair closes below this point, then price could test the 108.25 to 108.50 levels. This pair has a resistance around the 111.20 region. If the price closes above this point, then further bullish movement could be possible and the 112.00 level could be tested.
Target: 0.9750 to 0.9700
The USDCHF pair too was range bound yesterday. This pair is likely to be bearish in the near term and could test the 0.9750 support level. You can aim to buy at this level. The 0.9825 point is a resistance level for this pair. If this mark is breached and the pair closes above this level, then we could see further bullish momentum with price moving towards the 0.9900 point.