Daily Forex Forecast for May 8, 2017

EURUSD:

Expectation: Bullish

Target: 1.1050

Last week, the EURUSD pair was bullish and hit a peak of 1.0998. At this point in time, we expect this pair to remain bullish in the near term. The 1.0950 to 1.0940 levels should provide support 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 remain range bound for some time in the 1.0850 to 1.0950 area. Meanwhile, we expect the price to rise in the near term and test the 1.1050 levels.

GBPUSD:

Expectation: Bullish

Target: 1.3000 to 1.3050

The GBPUSD pair closed at 1.2978 last week though it had initially moved lower and hit a low of 1.2830. This large recovery hints at strong bullish sentiment in the market and we expect the price to stay bullish in the near term. Hence, this pair is likely to move upwards and test the 1.3000 to 1.3050 levels in the near term. This pair currently has a support at the 1.2950 region. If the price closes below this level, then the next support at 1.2900 could be tested or the price may remain range bound for some time. However, we expect this pair to remain bullish in the near term.

USDJPY:

Expectation: Bullish to neutral

Target: 113.60

The USDJPY pair was bullish last week and peaked at the 113.04 level. 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 113.60 level in the near term. This pair has a strong support at the 112.50 mark currently – if the price closes below this point, then further bearish movement could be possible and the 111.85 level could be tested. If that happens, then you can aim to buy at the 111.85 level. At the moment though, we expect further bullish movement and this pair may move towards the 113.60 level.

USDCHF:

Expectation: Bearish

Target: 0.9810

The USDCHF pair moved lower last week and hit the 0.9853 level as we had predicted. This pair is likely to remain bearish in the near term and may reach the 0.9810 levels. The 0.9880 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 0.9950 point. Meanwhile, we expect further bearish momentum in this pair and expect the price to move towards the 0.9810 mark.