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Technical Outlook for Majors 16/01/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 16, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro slumped yesterday on SNB’s shock, with acceleration lower posting fresh 11- year low at 1.1566. Loss of the last significant support at 1.1640, 2005 low and daily close below here, sees no obstacles for further fall towards 1.1375, low of Nov 2003 and 1.1210, Fibonacci 61.8% retracement of multi-year 0.8225/1.6039 ascend. Corrective rallies face initial barriers at 1.1700, round-figure resistance and 1.1726, yesterday’s intraday low. Only close above yesterday’s high, reinforced by daily 10SMA at 1.1791, would sideline immediate bearish threats.
    Res: 1.1672; 1.1700; 1.1726; 1.1791
    Sup: 1.1598; 1.1566; 1.1500; 1.1450

    [​IMG]GBPUSD</p>The pair is congested under fresh correction high at 1.5267, which resisted yesterday’s fresh attempts higher, guarding pivotal barriers at 1.5317, 05 Jan lower top and descending daily 20SMA at 1.5358. Subsequent pullback found footstep at 1.5150, daily Tenkan-sen line, with near-term price action now ranging between 1.5150 and 1.5267 boundaries. Hourly studies turned negative, with 4–hour indicators hovering just above their midlines, which see the downside still vulnerable. The notion is supported by fresh attempts below descending daily 10SMA and yesterday’s negative close. Prolonged consolidation is seen as likely near-term scenario and expected to precede fresh push lower, as overall bearish structure is focusing psychological 1.5000 target.
    Res: 1.5244; 1.5267; 1.5317; 1.5358
    Sup: 1.5150; 1.5122; 1.5100; 1.5075

    Overall picture remains bearish and the pair looks for final push towards 115.55 breakpoint, low of 16 Dec and Fibonacci 38.2% retracement of 105.18/121.83 ascend. Yesterday’s close in red and today’s probe below psychological 116 support, maintain the pressure, as violation of 115.55 handle, which also marks Fibonacci 38.2% retracement of Oct/Dec 2014 15.18/121.83 ascend, is expected to trigger stronger correction towards next target at 114 zone, where ascending daily 20SMA lies. Corrective rallies should ideally hold below 118 barrier, yesterday’s high and near 50% of 119.95/115.83 downleg.
    Res: 117.00; 117.24; 117.41; 117.93
    Sup: 116.05; 115.83; 115.55; 115.00

    The pair maintains positive near-term tone and rallied above previous high and rejection top at 0.8352, with rallies peaking at 0.8293. Yesterday’s positive close shows long upper shadow of the daily candle, with close below 0.8253 barrier, signaling further hesitation. However, positive near-term studies and north heading daily indicators are supportive, with daily 10/20SMA’s bull-cross, containing dips and underpinning fresh attempts higher. Eventual break above 0.83 barrier to open Fibonacci 38.2% of 0.8794/0.8031 downleg at 0.8322, ahead of pivotal lower top of 11 Dec 2014 at 0.8372, reinforced by daily 55SMA, above which to confirm recovery. Conversely, loss of pivotal support at 0.8130, would sideline bulls.
    Res: 0.8254; 0.8293; 0.8322; 0.8373
    Sup: 0.8200; 0.8180; 0.8130; 0.8100

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