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Technical Outlook for Majors 05/11/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Nov 5, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro’s extension of near-term corrective phase from fresh two-year low at 1.2440, with yesterday’s positive close, which occurred above 1.25 handle, was short-lived. The rally probed above 1.2565, 38.2% of 1.2769/1.2440 downleg, shy of the first breakpoints at 1.2600, round-figure / daily Tenkan-sen line and 1.2630, 30 Oct lower top, before pulling back. Return below 1.25 handle, neutralizes hopes of stronger rally, which was signaled by daily RSI / MACD bullish divergence and raises downside risk, which will be confirmed by sustained break and close below 1.25 level.
    Res: 1.2500; 1.2529; 1.2565; 1.2576
    Sup: 1.2469; 1.2440; 1.2400; 1.2350

    The pair lost traction on attempt to sustain break above 1.60 handle, failing for now to capitalize on yesterday’s positive close, after repeated Dojis. Return below 1.60 level weakens near-term structure, with focus shifting towards near-term range’s floor, as overall picture remains bearish. Daily close below 1.5923, low of 03 Nov, to confirm bearish resumption towards psychological 1.59 level and key support at 1.5873, low of 15 Oct. Conversely, fresh attempts above 1.60 barrier, require break and close above 1.6052/61, daily Tenkan-sen/Kijun-sen lines, to confirm break above near-term congestion and signal stronger recovery.
    Res: 1.6000; 1.6020; 1.6037; 1.6052
    Sup: 1.5923; 1.5900; 1.5873; 1.5850

    [​IMG]USDJPY</p>The pair remains well supported and establishes above 114 handle, following yesterday’s pullback from 114.20, which was contained above psychological 113 support. Fresh bulls continue to move the price higher, despite overbought conditions on all timeframes, with extension above 115 barrier, expected to further accelerate gains. The pair focuses 118.00, Fibonacci 261.8% projection, ahead of more significant 120.26, Fibonacci 61.8% retracement of larger 147.68/75.55 descend, in the near-term, as bullish acceleration on a break above long-term bear-trendline, connecting 135.16 and 124.14, 2002/ 2007 peaks, sees scope for further retracement of multi-year 147.68/75.55 descend.
    Res: 115.00; 115.48; 116.00; 116.50
    Sup: 114.00; 113.50; 113.20; 113.00

    Near-term price action comes under pressure after upside attempts failed to extend gains and fill Monday’s opening gap, as rally stalled at week’s high at 0.8760. Return below 0.87 handle, brings downside risk towards short-term congestion lows at 0.8641 in play, for eventual break lower and resumption of larger downtrend. Overall bears favor scenario. Only return and break above session highs, would sideline immediate bears, while break and close above 0.88 barrier is required to shift near-term focus higher.
    Res: 0.8700; 0.8730; 0.8760; 0.8775
    Sup: 0.8676; 0.8641; 0.8600; 0.8543

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