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
R3 | 1.1814 |
R2 | 1.1745 |
R1 | 1.1677 |
Pivot | 1.1609 |
S1 | 1.1541 |
S2 | 1.1472 |
S3 | 1.1404 |
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
R3 | 120.431 |
R2 | 119.63 |
R1 | 118.795 |
Pivot | 117.994 |
S1 | 117.159 |
S2 | 116.358 |
S3 | 115.523 |
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
R3 | 1.5286 |
R2 | 1.5232 |
R1 | 1.5187 |
Pivot | 1.5133 |
S1 | 1.5088 |
S2 | 1.5034 |
S3 | 1.4989 |
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.