Daily Forex Preview – 08/01

EURUSD Daily Pivots

EURUSD (1.08): EURUSD saw a very bullish day yesterday as prices managed to reverse off 1.075 two days ago to close yesterday near 1.0931, close to the right shoulder. With prices trading back above the head and shoulders neckline, the head and shoulders pattern identified is considerably at risk unless prices manage to break below the neckline and close below the previous lows. Support at 1.0815 - 1.079, marking the neckline support remains a key level to watch for in the near term and a break below could ensure a move down to 1.0633. Alternatively, if the neckline support manages to hold prices, EURUSD could be looking to posting a higher high, potentially invalidating the head and shoulders pattern. To the upside, above 1.095 resistance, 1.10 comes into the picture.

USDJPY Daily Pivots

USDJPY (118): USDJPY closed below the support level of 118.4 - 118 region but price action is currently reversing off the lows at 117.33. A break above the support level could see prices attempt to retest back to the previously broken support near 121.2 to establish resistance. In the short term, 119.144 remains a key level to watch for as a break above this support/resistance is needed to validate the move to 121.2. Overall, USDJPY remains biased to the downside, as long as prices remain below 122.5 region.

GBPUSD Daily Pivots

GBPUSD (1.46): GBPUSD touched down to 1.463 yesterday and closed in a sharp hammer type of candlestick pattern on the daily chart. A daily close above 1.463 could potentially signal a move to the upside. Prices are trading close to the support/resistance zone of 1.47 through 1.463 and a close above 1.47 is essential to see further gains in GBPUSD. To the upside, 1,484 - 1.496 comes into the picture. With the bearish momentum showing signs of exhaustion, GBPUSD could be looking to make a minor dip based on the Stochastics oscillator ahead of the move back to test one of the key resistance levels.