Daily Forecast: July 31

[FxInstructor]

EURUSD Forecast
The EURUSD attempted to push lower yesterday, bottomed at 1.2224 but closed higher at 1.2258 and hit 1.2288 earlier today. There are no changes in my technical outlook. The bias remains neutral in nearest term as price is in a consolidation phase. I still prefer a bearish scenario at this phase but need a clear break and daily close at least back below 1.2200 – 1.2160 to end the short term bullish phase after Draghi’s comment last week. On the upside, a clear break and daily close above 1.2400 will interrupt the major bearish scenario and activate my bullish intraday mode.



GBPUSD Forecast
The GBPUSD was indecisive yesterday but overall still able to maintain its bullish intraday bias. The bias remains bullish in nearest term especially if price able to make a clear break and daily close above the range area (see my h4 chart below) testing 1.5900 – 1.6000 resistance area. Immediate support remains around 1.5660. A clear break below that area could lead price to neutral zone in nearest term testing 1.5600. From a daily chart perspective, price is still moving below the daily EMA 200, keep the major bearish outlook intact.



USDJPY Forecast
The USDJPY regained its bearish momentum yesterday, bottomed at 78.10 and now seems ready to test 77.65 support area. A clear break and daily close below that area could trigger further bearish pressure testing the record low at 75.56. The major technical outlook is still strongly bearish, but any movement closer to the record low could attract many buyers. Immediate resistance is seen around 78.50/80. A clear break and daily close above that area could lead price to neutral zone in nearest term testing 79.20 area.



USDCHF Forecast
The USDCHF attempted to push higher yesterday, topped at 0.9822 but closed lower at 0.9796 and hit 0.9772 earlier today. The bias is neutral in nearest term. I still prefer a bullish scenario at this phase but need a clear break and daily close at least back above 0.9850 to end bearish correction phase and continue the major bullish scenario testing 0.9900 even 1.0000/50 resistance area. On the downside, a clear break and daily close below 0.9700 could continue the bearish correction phase testing 0.9580 support area.

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Have a great day!