Daily Forex Preview 22 Jan: 2015, Guest post by John Benjamen at Orbex

Daily Forex Preview – 22/01 Guest post by John Benjamen at Orbex

EURUSD Daily Pivots

EURUSD is trading within the trend lines spotted with the major falling trend line coming in well to resist any rallies. The H1 chart shows the formation of a small doji candlestick indicating weakness to the upside. We could therefore expect a minor decline to the downside and on break of the small rising trend line, EURUSD could potentially be looking at targeting 1.1491 in the short term. Alternatively, a break of the falling trend line could see an immediate rally towards 1.171.

USDJPY Daily Pivots

USDJPY price action looks like it would potentially rally further up to test the break out level at 118.64, although a push higher could also see another test of resistance at 118.87 price zone. If the resistance at 118.97 –  118.87 holds, USDJPY could possibly look towards declining lower targeting the initial support at 118 followed by 117 and eventually down to 116. A close above 119 could however change the bias.

GBPUSD Daily Pivots

GBPUSD sits at a critical juncture. A break to the upside will see the rally be capped only near the previous broken support of 1.525 price zone. However price action needs to give a clear confirmation above 1.5153 level to validate this idea. To the downside, a break of the rising trend line and the horizontal support at 1.5112 could potentially make way for more declines towards 1.50.