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Technical Outlook for Majors 16/12/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Dec 16, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro trades within narrow range and remains capped under 1.25 barrier, lacking momentum for final push higher, despite leaving a series of higher lows in past few sessions. Near-term studies are positively aligned and keep focus at the upside, with yesterday’s negative close signaling further hesitation on approach to pivotal 1.2500/30 barriers. Daily 20SMA / Kijun-sen line, currently at 1.2420 zone, offer initial support, keeping breakpoint at 1.2460 higher base and 50% retracement of 1.2244/1.2493 rally, protected for now. Lift above 1.2500/30 barrier, as well as daily 55SMA at 1.2540, is required to open break point at 1.2597, 19 Nov high and enter corrective phase of larger descend from 1.3992, 08 May peak, on a break higher.
    Res: 1.2476; 1.2493; 1.2505; 1.2530
    Sup: 1.2420; 1.2400; 1.2360; 1.2340

    Cable accelerated lower yesterday, after repeated failure at 1.5755/61 barriers were capped by daily Kijun-sen line. Fresh weakness erased over 61.8% of 1.5539/1.5755 rally, on a probe below daily Tenkan-sen line and dip to 1.5600, round-figure support. Near-term studies weakened and see increased risk of retesting short-term range floor at 1.5539, fresh 15-month low, posted on 08 Dec. This may also signal bearish resumption of larger downtrend, on violation of 1.5539 handle, as overall picture remains bearish. However, extension of current one-month long consolidative phase, could be expected in case of failure to break below 1.5539 handle. Alternatively, renewed attempts at pivotal barriers lay at 1.5755/61, would bring near-term bulls back to play.
    Res: 1.5675; 1.5690; 1.5745; 1.5755
    Sup: 1.5624; 1.5600; 1.5583; 1.5539

    The pair closed in red yesterday, signaling bearish resumption and break below near-term congestion, limited by daily Tenkan-sen and Kijun-sen lines. Today’s acceleration and probe below previous low of 27 Nov and pivotal support at 117.22, requires close below the latter, to confirm further correction of larger 105.18/121.83 ascend, signaled by last week’s bearish Engulfing pattern. Fresh acceleration lower to open next target at 115.43, 17 Nov low / Fibonacci 38.2% retracement of 105.18/121.83 rally. Initial resistances lay at 117.75/118, while 119 zone, previous hourly range top, is expected to cap stronger corrective attempts.
    Res: 117.75; 118.00; 118.32; 118.60
    Sup: 117.00; 116.50; 116.00; 115.43

    The pair trades in near-term consolidative phase, off psychological 0.8200 support, which was cracked but contained yesterday / today’s attempts lower. Overall negative picture and yesterday’s close in red, see current action as hesitation at strong support, with limited upside action expected to hold below 0.83 resistance zone, last Friday’s high / Fibonacci 61.8% retracement of 0.8373/0.8198 descend / daily Tenkan-sen line, as oversold daily studies still don’t show signals of reversal. Low of May 2010 at 0.8051, along with psychological 0.8000 support, mark next targets and strong supports, while only close above 0.8300 barrier would have more significant impact on near-term bears.
    Res: 0.8265; 0.8300; 0.8340; 0.8373
    Sup: 0.8200; 0.8150; 0.8100; 0.8051

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