USDCHF Daily Forecast: October 05

The USDCHF made a significant technical movement on Friday as price violated the bullish channel to the downside. The bias is bearish in nearest term targeting at least 1.0250 but market volatility lately makes my medium term outlook remains neutral. The best place to put a short position is waiting for price to retreat higher near the bullish channel lower line and we see rejection to move above 1.0380 resistance area with a tight stop loss if price go back inside the bullish channel.

USDJPY Daily Forecast: October 05

The USDJPY attempted to push lower on Friday, bottomed at 88.59 but whipsawed to the upside and closed at 89.79. At the same time, the bearish continuation failure followed by an important technical event as price slipper above the trendline resistance (blue). Although it’s too early for a bullish view, it’s clear that the bearish scenario is now in critical phase as bearish pressure seems to begin to lose some momentum. Consistent move above the trendline should trigger further bullish momentum targeting at least 90.40 area. However if price reject to move consistently above the trendline, the bearish scenario should remains intact. Immediate support at 89.30 followed by 88.50.

GBPUSD Daily Forecast: October 05

The GBPUSD also had indecisive movement on Friday. The pair attempted to push lower, bottomed at 1.5808 but whipsawed to the upside and closed higher at 1.5944. On h4 chart below we can see that after break below the trendline support (orange, now become resistance) and bottomed at 1.5805 price retreated higher back at the trendline. I think this is a normal movement and as long as price stay below the trendline and 1.6000 area, I prefer a downside scenario. However break above the trendline and consistent move above 1.6000 area should trigger further bullish momentum re-testing 1.6113 area. Immediate support at 1.5905. Break below that area should trigger further bearish momentum.