Daily Forex Preview – 23/04

EURUSD Daily Pivots

R3	1.0872
R2	1.0836
R1	1.0780
Pivot	1.0744
S1	1.0688
S2	1.0651
S3	1.0595

 

EURUSD attempted to break higher ground but failed to keep up the gains or close above the previous high at 1.0823. The currency fell from the recent lower highs at 1.08 and is currently trading outside of the falling price channel. Plotting the Andrews’ pitchfork, we notice price action at an important juncture. If price fails to push back into the price channel and settle above 1.07139, we could expect to see a break lower down to 1.0635 levels. The confluence with the median line could offer some support that could result in a minor bounce in prices. For upside rally to materialize, we need to see price to eventually move out from the pitchfork’s upper median line.

USDJPY Daily Pivots

R3	120.748
R2	120.355
R1	120.132
Pivot	119.739
S1	119.511
S2	119.118
S3	118.899

 

USDJPY broke out from the falling price channel and looks poised for further upside gains. A retest to the daily pivot level and to 119.6 is quite a possibility and if the support holds, USDJPY could target 120.263. Failure to support prices near 119.6 could weaken the upside bias and set the stage for another leg down towards 118.9.

GBPUSD Daily Pivots

R3	1.5272
R2	1.5176
R1	1.5106
Pivot	1.501
S1	1.494
S2	1.4843
S3	1.4773

 

GBPUSD enjoyed a good rally yesterday after breaking above the resistance at 1.495 and making a new monthly high above 1.50. Price action is currently forming a bullish flag and an upside breakout could see price post fresh highs to 1.515. To the downside, a break below the recent lows to 1.50 could see the cable retest the broken resistance at 1.4955 for support while weakening the case for further upside gains.