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Technical Outlook for Majors 19/01/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 19, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro trades in near-term consolidative phase, awaiting this week’s ECB meeting and following last week’s fresh acceleration lower, which resulted in the strongest weekly loss since July 2012, posting fresh 12-year low at 1.1458. Overall negative tone favors further weakness, as the price approaches targets at 1.1375, low of Nov 2003 and 1.1210, Fibonacci 61.8% retracement of 0.8225/1.6039, 2000/2008 ascend. Descending hourly 20EMA, capped the upside action from new low at 1.1587, guarding 1.16 barrier and 38.2% retracement of 1.1845/1.1458 downleg and pivotal 1.1650, hourly lower platform and 50% retracement, close above which to signal stronger bounce from 1.1458 low, towards next breakpoint of daily 10SMA at 1.1750. Oversold daily studies so far do not show stronger signals of recovery, along with narrow-range trade on Asian session, seeing upside attempts limited for now.
    Res: 1.1587; 1.1606; 1.1650, 1.1700
    Sup: 1.1550; 1.1500; 1.1458; 1.1400

    The pair remains capped by fresh correction high at 1.5267, near Fibonacci 38.2% of 1.5618/1.5032 downleg, following unsuccessful attempts to close above descending daily 10SMA and keeping so intact far breakpoints at 1.5317, 05 Jan lower top and descending daily 20SMA at 1.5329, close above which is required to trigger stronger recovery. Negative daily / weekly close signals limited corrective actions ahead of fresh weakness towards initial target at psychological 1.50 level and key 1.4820 higher base.
    Res: 1.5168; 1.5232; 1.5267; 1.5317
    Sup: 1.5100; 1.5075; 1.5032; 1.5000

    The pair bounced last Friday, after posting fresh low at 115.83 and showed positive daily close, which averts immediate downside risk at pivotal 115.55 support, 16 Dec 2014 low and Fibonacci 38.2% retracement of Oct/Dec 2014 105.18/121.83 ascend. Negative weekly close, however, keeps the downside at risk, as recovery attempts stay capped under 118 barrier, by daily Tenkan-sen line and formation of daily 10/55SMA’s bear-cross. Break here and extension above 118.68, daily Ichimoku cloud top is required to signal higher low and spark further recovery. Otherwise, expect fresh attempts lower, as daily indicators are establishing in negative territory and hourly bulls are losing traction. Close below 117 handle to confirm scenario.
    Res: 117.75; 118.00; 118.68; 119.30
    Sup: 117.00; 116.56; 115.83; 115.55

    The pair holds positive near-term tone, as last week’s recovery attempts peaked at 0.8293, but from the other side failed to close above previous high at 0.8253. Daily and weekly Doji, signals hesitation of recovery attempt from 0.8031 low, which requires break above 0.8373, 11Dec 2014 lower top, to signal stronger recovery. Mixed studies suggest more sideways trading in near-term, as hourlies are neutral, while 4-hour tone remains positive, with daily action underpinned by 10/20SMA’s bull cross, but descending daily 55SMA, maintaining pressure. Break of either pivotal point at 0.8131 or 0.8373, to establish fresh near-term direction.
    Res: 0.8254; 0.8293; 0.8322; 0.8373
    Sup: 0.8200; 0.8166; 0.8131; 0.8066

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