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Technical Outlook for Majors 05/01/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 5, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro closed the first trading day in 2015 below psychological 1.2000 level, with further weakness signaled by week’s gap-lower opening. The price dipped below 1.1900 handle, posting fresh low at 1.1860. Consolidative phase is under way and holding below 1.2000 barrier, which now acts as strong resistance and should ideally cap corrective attempts on oversold near-term studies. Overall negative sentiment is reinforced by negative fundamentals, which keep the single currency pressured. Close below 1.20 resistance to confirm completion of monthly bear-flag, as all critical supports were met and next significant support lies at 1.1640, low of 2005, below which to open 1.12100, Fibonacci 61.8% of multi-year 0.8225/1.6039 ascend. Near-term bears would be delayed in case of regain and close above 1.20 handle, also Fibonacci 38.2% of 1.2220/1.1860 downleg
    Res: 1.1975; 1.2000; 1.2040; 1.2068
    Sup: 1.1925; 1.1900; 1.1860; 1.1800

    Cable dipped to the new low at 1.5166, heading towards psychological 1.5000 support, on fresh acceleration and weekly gap lower opening. Last Friday’s long red candle signals resumption of larger downtrend, interrupted by mid-Nov / end of Dec consolidation, for eventual full retracement of 1.4812/ 1.7189 ascend of July 2013/ July 2014. Oversold near-term conditions suggest corrective action, which so far holds below last week’s closing level at 1.5330. Break here to accelerate correction towards 1.5400 and 1.5445, Fibonacci 61.8% of 1.5618/1.5166, where extended rallies should be ideally capped.
    Res: 1.5330; 1.5400; 1.5445; 1.5500
    Sup: 1.5271; 1.5200; 1.5166; 1.5100

    [​IMG]USDJPY</p>The pair remains in consolidative phase under 121 barrier, after corrective dips were contained at 118.80, Fibonacci 38.2% of 115.55/120.81 upleg, reinforced by daily Kijun-sen line. Break and close above 120 handle, keeps focus at the upside, as near-term studies turned positive and see scope for break above near–term congestion tops and eventual retest of key 121.83 peak, posted on 08 Dec. Only break below 118.80 support would neutralize bulls.
    Res: 120.73; 120.81; 121.00; 121.83
    Sup: 120.00; 119.80; 119.25; 118.85

    The pair remains under pressure and heads towards psychological 0.8000 support, after completion of near-term consolidative phase, which was capped by descending daily 20SMA at 0.8213. Daily/weekly close in red supports further weakness and test of initial 0.8000 target and 0.7945, Fibonacci 61.8% retracement of 0.6007/1.1079 ascend, in extension. Session high at 0.8104, offer good resistance, ahead of 0.8145 lower top and Fibonacci 61.8% of 0.8213//0.8034 downleg, where rallies are expected to be ideally limited. Only clearance of 0.8213 breakpoint would neutralize near-term bears.
    Res: 0.8104; 0.8130; 0.8145; 0.8182
    Sup: 0.8034; 0.8000; 0.7945; 0.7900

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