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Technical Outlook for Majors 12/01/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 12, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    Corrective rally from 08 Jan fresh low at 1.1752, lost traction and stalled at 1.1870, with subsequent pullback probing below 1.18 handle, also Fibonacci 61.8% retracement of 1.1752/1.1870 rally and softening near-term studies. Larger picture’s bears remain intact, which increases risk of return to temporary support at 1.1752, above which bears pause their move towards 1.1640 target. Today’s close in red to confirm an end of corrective phase, signaled by Friday’s positive close and shift focus lower. Only close above 1.19 barrier and regain of 1.1947, daily 10SMA, would ease downside pressure and open pivotal 1.1975, lower platform and previous week’s high, reinforced by daily Tenkan-sen line.
    Res: 1.1823; 1.1838; 1.1870; 1.1931
    Sup: 1.1786; 1.1752; 1.1700; 1.1640

    [​IMG]GBPUSD</p>Cable dipped from overnight high at 1.5191, where recovery rally from 1.5032 low stalled and probed below 1.51 handle, which offers temporary support. Near-term studies show signs of improvement, however, overall bearish structure sees limited upside actions, while 1.52 zone caps and keeps pivotal 1.5272, lower top of 06 Jan and last week’s highs and hourly lower platform at 1.5317, out of reach. Consolidative phase is seen as near-term scenario, with more recovery action seen on a close above 1.52 or fresh weakness and extension towards target at psychological 1.50 level, expected in case the pair loses 1.51 handle.
    Res: 1.5175; 1.5200; 1.5272; 1.5317
    Sup: 1.5097; 1.5075; 1.5032; 1.5000

    [​IMG]USDJPY</p>The pair trades in choppy near-term consolidative phase above 118 support, which was retested after recovery stall on approach to 120 barrier. Immediate downside risk, signaled by Friday’s long red candle, is sidelined, as the price bounced to 119.30, daily 20SMA and near Fibonacci 61.8% retracement of 119.95/118.10 downleg, where rally was capped for now. Near-term studies remain weak and keep risk of return to 118 handle, loss of which is expected to trigger further weakness and expose pivotal 115.55, 16 Dec 2014 correction low. South heading daily studies support the notion, while daily 20SMA stay intact. Break and close above here to improve near-term outlook and signal possible retest of initial barrier at psychological 120 level.
    Res: 119.00; 119.30; 119.75; 119.95
    Sup: 118.40; 118.00; 117.56; 117.15

    The Aussie lost traction and reversed over 50% of 0.8031/0.8253 recovery rally, which accelerated on extension through pivotal 0.8155 and 0.8213 barrier. Quick reversal tests daily Tenkan-sen / 20SMA and signals false break higher, which requires confirmation on a daily close below 0.82 barrier, for retest of 0.8031 double-bottom and eventual attack at psychological 0.8000 support. Conversely, fresh strength and close above 0.8213, 31Dec 2014 high, would delay and keep hopes of fresh recovery attempts in play.
    Res: 0.8170; 0.8200; 0.8213; 0.8253
    Sup: 0.8130; 0.8100; 0.8080; 0.8031

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