EURUSD
The Euro consolidates within 1.0868/1.0982 range, holding in daily Ichimoku cloud, after recovery leg from 1.0801, low of 17 Dec, stalled under psychological 1.10 barrier.
Bullish daily studies favor resumption of the upleg from 1.0801, for final attack at key 1.1058/55 barrier, former recovery top of 15 Dec, reinforced by daily Ichimoku cloud top and 100SMA. Break here is needed to signal resumption of larger recovery from 1.0519, low of 03 Dec and confirm trough at 1.0801.
Near-term studies are bullishly aligned, with correction on overbought slow Stochastic, expected to precede fresh attacks at near-term range top.
Daily Tenkan-sen offers initial support at 1.0929, near Fibonacci 38.2% of 1.0868/1.0977 upleg, which is expected to ideally contain dips.
However, extension of corrective pullback should be contained above daily cloud base at 1.0888, to keep near-term bulls in play.
Otherwise, reversal under daily cloud and rising daily 20SMA, currently at 1.0875, will weaken the structure and expose range’s lower boundary for test.
Res: 1.0982; 1.1009; 1.1042; 1.1058
Sup: 1.0929; 1.0909; 1.0888; 1.0875
GBPUSD
Cable entered near-term consolidation under 1.4943 high, where recovery rally from fresh eight-month low at 1.4803, was capped by initial barrier, falling daily 10 SMA.
Daily slow Stochastic is heading north, on reversal from oversold territory and sees room for further upside extension. However, firmly bearish daily studies, suggest limited upside action, before bears resume for clear break below cracked weekly channel support, currently at 1.4834, for final push towards key med-term support at 1.4563, annual low, posted on 14 Apr.
Bullishly aligned near-term studies see potential for attempts above 10SMA barrier, towards next significant levels at 1.4969, Fibonacci 38.2% of 1.5237/1.4803 downleg, reinforced by 4-hour Ichimoku cloud base and psychological 1.50 barrier, where extended rallies should be limited.
Only close above falling daily 20SMA, currently at 1.5016, would sideline bears and signal stronger correction.
Res: 1.4943; 1.4969; 1.5000; 1.5020
Sup: 1.4931, 1.4889; 1.4856; 1.4836
USDJPY
The dollar bounces from fresh low at 120.05, posted today, on extension of steep fall from 123.53, 18 Dec peak.
Last Friday’s fall left long bearish candle and closed below former low of 14 Dec at 120.33, signals fresh extension of bear-leg from 123.53.
Psychological 120 support holds for now, with further recovery action signaled by oversold daily slow Stochastic. Initial barrier lies at 120.89, daily Ichimoku cloud base and 23.6% of 123.53/120.05 downleg, followed by Fibonacci 38.2% retracement at 121.38 and 200SMA at 121.58, which is expected to cap extended rallies.
On the downside, daily close below cracked Fibonacci 61.8% retracement of 118.05/123.74 rally at 120.22 and sustained break below 120.00 handle, is needed to confirm bearish resumption.
Res: 120.89; 121.38; 121.58; 121.79
Sup: 120.33; 120.05; 119.60; 119.39
AUDUSD
Recovery rally from 0.7095 low struggles at strong 0.7280 barrier, former tops of 15/16 Dec and Fibonacci 61.8% of 0.7383/0.7095 downleg. Near-term price action consolidates within narrow range, with bullish setup of daily studies being supportive, but overbought slow Stochastic, warning of possible recovery stall.
Sideways-moving daily 20SMA offers initial support at 0.7241, followed 0.7207, 4-hour chart trough and Fibonacci 38.2% of 0.7095/0.7280 upleg, loss of which would be initial signal of stronger pullback.
Downside breakpoint lies at 0.7160 zone, Fibonacci 61.8% retracement and thin daily Ichimoku cloud.
Conversely, daily close above 0.7280 will give initial bullish signal of further retracement of 0.7383/0.7095 downleg.
Res: 0.7280; 0.7315; 0.7332; 0.7383
Sup: 0.7253; 0.7241; 0.7207; 0.7166
The Euro consolidates within 1.0868/1.0982 range, holding in daily Ichimoku cloud, after recovery leg from 1.0801, low of 17 Dec, stalled under psychological 1.10 barrier.
Bullish daily studies favor resumption of the upleg from 1.0801, for final attack at key 1.1058/55 barrier, former recovery top of 15 Dec, reinforced by daily Ichimoku cloud top and 100SMA. Break here is needed to signal resumption of larger recovery from 1.0519, low of 03 Dec and confirm trough at 1.0801.
Near-term studies are bullishly aligned, with correction on overbought slow Stochastic, expected to precede fresh attacks at near-term range top.
Daily Tenkan-sen offers initial support at 1.0929, near Fibonacci 38.2% of 1.0868/1.0977 upleg, which is expected to ideally contain dips.
However, extension of corrective pullback should be contained above daily cloud base at 1.0888, to keep near-term bulls in play.
Otherwise, reversal under daily cloud and rising daily 20SMA, currently at 1.0875, will weaken the structure and expose range’s lower boundary for test.
Res: 1.0982; 1.1009; 1.1042; 1.1058
Sup: 1.0929; 1.0909; 1.0888; 1.0875
GBPUSD
Cable entered near-term consolidation under 1.4943 high, where recovery rally from fresh eight-month low at 1.4803, was capped by initial barrier, falling daily 10 SMA.
Daily slow Stochastic is heading north, on reversal from oversold territory and sees room for further upside extension. However, firmly bearish daily studies, suggest limited upside action, before bears resume for clear break below cracked weekly channel support, currently at 1.4834, for final push towards key med-term support at 1.4563, annual low, posted on 14 Apr.
Bullishly aligned near-term studies see potential for attempts above 10SMA barrier, towards next significant levels at 1.4969, Fibonacci 38.2% of 1.5237/1.4803 downleg, reinforced by 4-hour Ichimoku cloud base and psychological 1.50 barrier, where extended rallies should be limited.
Only close above falling daily 20SMA, currently at 1.5016, would sideline bears and signal stronger correction.
Res: 1.4943; 1.4969; 1.5000; 1.5020
Sup: 1.4931, 1.4889; 1.4856; 1.4836
USDJPY
The dollar bounces from fresh low at 120.05, posted today, on extension of steep fall from 123.53, 18 Dec peak.
Last Friday’s fall left long bearish candle and closed below former low of 14 Dec at 120.33, signals fresh extension of bear-leg from 123.53.
Psychological 120 support holds for now, with further recovery action signaled by oversold daily slow Stochastic. Initial barrier lies at 120.89, daily Ichimoku cloud base and 23.6% of 123.53/120.05 downleg, followed by Fibonacci 38.2% retracement at 121.38 and 200SMA at 121.58, which is expected to cap extended rallies.
On the downside, daily close below cracked Fibonacci 61.8% retracement of 118.05/123.74 rally at 120.22 and sustained break below 120.00 handle, is needed to confirm bearish resumption.
Res: 120.89; 121.38; 121.58; 121.79
Sup: 120.33; 120.05; 119.60; 119.39
AUDUSD
Recovery rally from 0.7095 low struggles at strong 0.7280 barrier, former tops of 15/16 Dec and Fibonacci 61.8% of 0.7383/0.7095 downleg. Near-term price action consolidates within narrow range, with bullish setup of daily studies being supportive, but overbought slow Stochastic, warning of possible recovery stall.
Sideways-moving daily 20SMA offers initial support at 0.7241, followed 0.7207, 4-hour chart trough and Fibonacci 38.2% of 0.7095/0.7280 upleg, loss of which would be initial signal of stronger pullback.
Downside breakpoint lies at 0.7160 zone, Fibonacci 61.8% retracement and thin daily Ichimoku cloud.
Conversely, daily close above 0.7280 will give initial bullish signal of further retracement of 0.7383/0.7095 downleg.
Res: 0.7280; 0.7315; 0.7332; 0.7383
Sup: 0.7253; 0.7241; 0.7207; 0.7166
Windsor Brokers - Short Term Technical Analysis for Majors (10:00 GMT)
