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Technical Outlook for Majors 08/04/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Apr 8, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    Near-term price action remains at the back foot, with yesterday’s close in long red candle, confirming negative stance. Dips found temporary support at psychological 1.08 level, after cracking bull-trendline off 1.0461 low, currently at 1.0820, but being contained for now by daily 20SMA, currently at 1.0796. Recovery attempts above initial barrier at 1.0852, daily 10SMA, pressure next pivotal barrier at 1.0883, yesterday’s intraday high and lower top, ahead of former base at 1.0910 zone, also 50% of descend from 1.1034 to 1.0803, where extended rallies should be ideally capped. Negative near-term structure favors further weakness, with firm break below strong 1.08 support zone, to expose key near-term support at 1.0711, 31 Mar higher low. Break here to confirm double-top at 1.1050/34 and accelerate bears. Alternative scenario requires extension above 1.0915 and break of 1.0953, yesterday’s high/ lower top, also near Fibonacci 61.8% of 1.1034/1.0803 downleg, to confirm reversal.
    Res: 1.0883; 1.0915; 1.0953, 1.0964
    Sup: 1.0800; 1.0750; 1.0711; 1.0686

    Cable closed in red for the second consecutive day, holding soft near-term tone and seeing risk of further easing. Descend from upside rejection at 1.4979 was so far contained by bull-trendline, drawn off 1.4633 low, at 1.4800 zone. Strong bounce that left temporary low at 1.4798, approaches pivotal barrier 1.4918, yesterday’s high and lower top of 1.4979/1.4798 descend, requires close above 1.4918, to confirm reversal and shift near-term focus back towards pivotal 1.50 barrier, reinforced by daily Kijun-sen line. Otherwise, lower top formation would keep near-term risk shifted to the downside, with sustained break below trendline support, to confirm resumption of downmove from 1.4979 and re-open key near-term support and range floor at 1.4737.
    Res: 1.4915; 1.4942; 1.4979; 1.5000
    Sup: 1.4867; 1.4828; 1.4798; 1.4737

    The pair reversed quickly from yesterday’s fresh high at 120.43, after cracking pivotal 120.35 barrier and previous high, with yesterday’s close below the latter, suggesting that bulls require further consolidation, before final break higher. Near-term technicals remain positive, with current pullback’s low at 119.68, just under Fibonacci 38.2% retracement of 118.70/120.43 upleg, seen as ideal reversal point. Daily indicators are in neutral mode, while setup of moving averages is bullish and supportive for fresh attempts higher. Sustained break above 120 barrier and daily close above yesterday’s fresh high, is required to confirm rally. However, prolonged consolidation cannot be ruled out. Only close below yesterday’s low at 119.33, reinforced by daily 55SMA, would soften near-term tone and confirm false break higher.
    Res: 120.05; 120.35; 120.43; 120.80
    Sup: 119.68; 119.33; 119.16; 118.90

    The pair holds positive near-term tone, with renewed attempts above daily 20SMA that so far capped upside, under way. Yesterday’s positive close was diminished by strong sell-off that left daily candle with long upper shadow, signaling hesitation at pivotal 0.77 resistance zone. Sustained break above daily 20SMA is required to resume recovery action from 0.7531 low, towards next barriers at 0.7734, daily Kijun-sen / 50% of 0.7936/0.7531 downleg and 0.7782, Fibonacci 61.8% retracement, with close above here to confirm reversal. However, larger picture remains bearish and sees current attempts higher as corrective actions, preceding fresh push lower. Only break above key 0.7936 peak, posted on 24 Mar, would confirm near-term base and signal stronger recovery.
    Res: 0.7709; 0.7734; 0.7782; 0.7841
    Sup: 0.7627; 0.7600; 0.7575; 0.7531

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