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Technical Outlook for Majors 11/11/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Nov 11, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro lacked strength to extend near-term recovery attempt from 1.2357 low, as probe above 1.25 barrier was short-lived and capped by descending daily 10SMA, under pivotal 1.2532 lower top. Yesterday’s close in red, with candle’s longer upper shadow, signals renewed downside pressure. Pullback from recovery high at 1.2507, probes below 1.24 handle, retracing 76.4% of 1.2357/1.2507 ascend. Overall tone is negative, as near-term bears coming in play after yesterday’s upside rejection, with clear break below1.24 handle, seen as the last step on completion 1.2357/1.2507 corrective phase. On the other side, daily RSI/MACD bullish divergence, keeps hopes of fresh recovery attempts, with clearance of 1.2507/32 barriers, required as initial signal of stronger recovery.
    Res: 1.2438; 1.2463; 1.2487; 1.2507
    Sup: 1.2392; 1.2377; 1.2357; 1.2300

    Cable came under pressure after failure to sustain break above 1.59 barrier, 50% of 1.6020/1.5788 downleg and subsequent pullback so far retraced 61.8% of 1.5788/1.5915 recovery rally. Near-term focus shifts lower and brief consolidation above fresh lows at 1.5835, is likely to precede final push for full retracement of 1.5788/1.5915 corrective rally, as overall bears are looking for the next targets at 1.5750/20, June 2013 high / Fibonacci 61.8% of 1.4812/1.7189, 2013 low / 2014 high, ascend. Alternatively, renewed strength through 1.59 barrier would sideline immediate downside risk, while clearance of 1.6020 lower platform and breakpoint zone, is required to neutralize near-term bears.</p>Res: 1.5870; 1.5915; 1.5953; 1.6000
    Sup: 1.5835; 1.5814; 1.5788; 1.5750

    The pair returns to strength after false break below pivotal 114 support and subsequent bounce, which fully retraced 115.56/113.84 corrective pullback. Reversal was signaled by yesterday’s bullish Hammer, with the pair hitting fresh seven-year highs and now focusing 117.95, Oct 2007 high and 120.12, Fibonacci 61.8% of long-term 147.68/75.55 descend. Initial supports lay 115.50, then 114.90 and 114.62, with key 114 support zone, marking near-term breakpoint.
    Res: 116.00; 116.21; 116.62; 117.00
    Sup: 115.50; 115.12; 114.90; 114.62

    Corrective bounce off fresh low at 0.8539 was capped at strong double-Fibonacci barrier at 0.8680 zone, 38.2% of 0.8909/0.8539 descend and 61.8% retracement of 0.8760/0.8539 downleg, reinforced by 4-hour 55EMA. Fresh easing sidelined near-term upside attempts, with probe below psychological 0.86 support, also mid-point of 0.8539/0.8680 upleg, signaling further extension lower. Weak near-term studies do not see much of upside potential for now, as overall bears are fully in play and look for break of temporary low at 0.8540, 50% of long-term 0.6007/1.1079 ascend, to open 0.8460, bear-trendline, connecting 2008 peak and 0.8658, 24 Jan 2014 low. On the other side, daily MACD bullish divergence, indicates stronger correction in the near-term. Break of initial 0.8680 barrier and 0.8760 lower platform, is required to revive bulls and sideline immediate downside risk.
    Res: 0.8632; 0.8649; 0.8680; 0.8700
    Sup: 0.8565; 0.8539; 0.8500; 0.8460

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