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Technical Outlook for Majors 05/12/2014

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

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro bounced strongly from fresh low at 1.2283 and peaked at 1.2455, where daily 20SMA and capped recovery rally, with descending daily Kijun-sen line reinforcing barrier. Brief attempt above pivotal 1.2425 barrier was short lived and so far did not affect underlying bear-trend, with only improvement seen on hourly studies. Also, long upper shadow of yesterday’s positive candle, show that selling interest persists. Near-term price action is flat, consolidating within narrow range under 1.24 handle. Today’s US jobs data are eyed and any dollar-negative surprise release could boost the Euro further, for possible test of 1.2505/30 breakpoints and stronger bounce on a break. Otherwise, fresh weakness and negative weekly close, will confirm overall bears, which keep 1.2042 target in short-term focus.
    Res: 1.2391; 1.2425; 1.2455; 1.2505
    Sup: 1.2360; 1.2300; 1.2283; 1.2258

    [​IMG]GBPUSD</p>Cable remains in consolidative phase above 1.5590 base, which offers solid support for now and descending daily 20SMA, keeping upside attempts capped. Yesterday’s Doji confirms near-term sideways mode, while overall picture is bearish and sees scope for fresh attack at 1.5590 base, with break lower to signal resumption of broader downtrend from 1.7189, 2014 peak. Near-term price action holds in the lower part of the range, capped by bear-trendline, connecting 1.5823/1.5761 peaks, which marks initial resistance at 1.5670. Lower platform at 1.5720, also Fibonacci 38.2% of 1.5823/1.5590, offers next significant barrier, ahead of 1.5761 lower top. Only break above pivotal 1.5823 barrier and range top, would have more significant impact and sideline bears for stronger corrective action.
    Res: 1.5670; 1.5720; 1.5761; 1.5800
    Sup: 1.5617; 1.5590; 1.5550; 1.5500

    The pair maintains positive tone, after yesterday’s choppy trading and probe above psychological 120 barrier, ended in Doji candle. Fresh attempts above 120 hurdle, suggest that consolidative phase is over, with positive sentiment being fuelled by optimistic expectation for US data. Weekly close above 120 handle to confirm resumption of larger uptrend towards short-term targets at 121.38, Dec 2005 high and 124.14, June 2007 peak and lower top of larger descend from 147.68, 1998 peak. Initial barrier lies at 120.50. Yesterday’s lows at 119.65, offer initial support, ahead of 119 zone and daily 10SMA at 118.75, which is expected to ideally hold stronger pullbacks.
    Res: 120.30; 112.50; 121.00; 121.38
    Sup: 119.65; 119.32; 119.00; 118.75

    The pair remains under pressure and continues to trend lower, with yesterday’s repeated close in red and below 0.84 handle, confirming negative tone. Fresh low was posted at 0.8354, extending the third wave off 0.8794 lower top. The pair eyes 0.8315, July 2010 low and 0.8300 support initially, ahead of 0.8268, Fibonacci 138.2% expansion, with psychological 0.8000 level, coming in short-term focus. Yesterday’s high at 0.8418, also previous low of 01 Dec, offer initial resistance, ahead of 0.8445/54 barrier. Corrective rallies are expected to hold below 0.8540 lower top, to keep bears intact.
    Res: 0.8418; 0.8465; 0.8500; 0.8540
    Sup: 0.8354, 0.8315; 0.8300; 0.8268

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