Majors Daily Forecast Oct 12 2017

EURUSD: Outlook Remains Higher!

The EURUSD remains on the upside as long as 1.1825 support holds on a daily closing basis, resistance comes at the 1.1865 levels, a halt is likely and it may turn lower from here, however; if this fails to occur, the pair will continue upside offensive to the 1.1935 levels, further upside resistance stands at the 1.2005 levels ahead of the 1.2059 levels.

On the downside, a rejection from the 1.1865 levels could mean a return to the 1.1825 levels where another rise is likely, anyway, below 1.1825 sees a pullback risk to 1.1738 levels (main) before the next rising, below 1.1738 will suggest a short-term topping around 1.1865 levels and turn the focus on the 1.1670 levels.

Conclusion: The EURUSD continues to face upside threats above the 1.1825 levels…

Note: Today the focus will be on U.S PPI data at 12:30 GMT followed by ECB President Mario Draghi speech at an event in Washington at 14:30 GMT. Any signs of  QE tapering from Draghi may bring a buying opportunity for EURUSD ( buy on dips)…the second point : the weekly chart suggest possible closing around 1.1815 levels, so the question is? will the pair be abale to hold its gains!!

GBPUSD: Recovers With Caution!

As long as 1.3130 support holds on a daily closing basis, the GBPUSD remains in a recovery mode and further upside could be seen, immediate resistance comes at the 1.3225 levels, a daily closing above that level will extend the corrective recovery to the 1.3350 levels, further upside resistance comes at the 1.3442 levels.

Alternatively, a failure to take out the 1.3225 levels on a daily closing basis could mean a return to the 1.3130 levels before another rising, however; a cut through 1.130 levels a short-term topping and turn the focus back on the 1.3041 levels, further down support stands at the 1.2908 levels.

Conclusion: The GBPUSD continues to face recovery threats above the 1.3130 levels.

Note: Minor support comes at the 1.3175 levels.

USDJPY: Faces Pullback Threats!

As long as 113.20 resistance holds on a daily closing basis, the USDJPY remains in a pullback mode and further down could be seen, support comes at the 112.20 levels, a halt is likely but a cut would open 111.33 levels, buyers may return from here but if this fails to happen, further down will be seen to the 110.25 levels.

On the upside, resistance comes at the 113.20 levels, a daily closing above that level is needed to prevent a return to the downside if seen the pair will extend gains to the 113.95 levels, further upside resistance stands at the 115.00 levels ahead of the 116.33 levels.

Conclusion: The USDJPY continues to face pullback threats below the 113.20 levels, but pullback moves are expected to be contained well by the 112.20/111.33 levels.