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Technical Outlook for Majors 19/12/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Dec 19, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro continues to move lower and establishes below 1.23 handle, following yesterday’s repeated close in red and below 1.2300. Month’s low at 1.2244 is in near-term focus, with break here to clear way for extension towards short-term target at 1.2042, low of July 2012. Larger picture’s bears are fully in play, with near-term price action trading in narrow consolidation above fresh low at 1.2264, capped under 1.23 barrier. Oversold studies of lower timeframes suggest that corrective bounce cannot be ruled out, with initial resistance at 1.2350 lower top, yesterday’s high and 1.2400, daily 20SMA. Daily close below here to keep immediate bears intact, while close above would further delay bears for 1.2452, Fibonacci 61.8% of 1.2568/1.2264 downleg and 1.2475, lower tops of 17/18 Dec.
    Res: 1.2300; 1.2350; 1.2380; 1.2400
    Sup: 1.2264; 1.2244; 1.2200; 1.2150

    Cable bounced from short-term range lows, which were retested on post-Fed’s acceleration lower and eases immediate downside pressure. Near-term action entered neutral, consolidative mode, hovering around range’s mid-point, where daily 20SMA / Kijun-sen cap for now at 1.5680. Yesterday’s positive close requires close above the latter, to re-focus range’s upper boundary. Otherwise, risk of re-testing base at 1.5540, will remain on the table, as larger picture remains bearish.
    Res: 1.5675; 1.5700; 1.5734; 1.5783
    Sup: 1.5630; 1.5600; 1.5540; 1.5500

    The pair maintains positive near-term tone, as fresh extension of bounce from 115.55, 16 Dec low, closed above daily 20SMA and reached pivotal 119.43/54 zone, Fibonacci 61.8% retracement of 121.83/115.55 / 11 Dec lower top pullback. Clear break here is required to offset hesitation signals, given by yesterday’s long-legged Doji and confirm reversal from 115.55. Overall bullish structure supports the notion. Rising hourly 20EMA, underpins the action at 119, ahead of bull-trendline, drawn off 115.55 low, currently at 118.82. Corrective dips should be ideally contained at 118.25 higher low, while break lower and loss of 118 handle, Fibonacci 38.2% of 115.55/119.45, would sideline immediate bulls.
    Res: 119.45; 119.54; 120.00; 120.35
    Sup: 119.00; 118.82; 118.50; 118.25

    The pair trades in extended consolidation above fresh low at 0.8105, posted on 17 Dec, with previous base at 0.8200, offering initial barrier and capping for now. Yesterday’s positive close suggests delay in bearish action of extended third wave from 0.8794, which is looking for test of 200% Fibonacci expansion at 0.8033 and psychological 0.8000 support. However, longer upper shadow of the candle, signals strong selling pressure and sees the upside attempts limited. Extension above 0.82 barrier to open daily Tenkan-sen line at 0.8239, close above which to further delay bears for psychological 0.8300 and pivotal 0.8353/73, daily 20SMA / 11Dec lower top.
    Res: 0.8200; 0.8234; 0.8272; 0.8300
    Sup: 0.8143; 0.8105; 0.8033; 0.8000

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