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Technical Outlook for Majors 20/11/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Nov 20, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro remains steady in the near term and consolidates above 1.25 support, following yesterday’s attempt through bear-trendline off 1.2884 and previous high at 1.2576, which was capped by bull-channel resistance trendline at 1.2600. Positive near-term studies support further upside as the pair remains within bullish channel from 1.2357 low. However, yesterday’s candle with longer upper shadow and close below initial barrier at 1.2576, suggest further consolidation, before fresh attempts higher. Clearance of 1.2600/10 barriers, daily Kijun-sen line and 50% retracement of 1.2884/1.2357 descend, is required to confirm near-term bottom and resume recovery towards 1.2683/1.2700, Fibonacci 61.8% / round-figure barrier and pivotal 1.2769 lower top, seen in extension. Psychological 1.25 level, also Fibonacci 61.8% of 1.2442/1.2597 upleg, offers initial support and should ideally contain, while deeper dips could extend towards pivotal 1.2440 higher low and channel support. Break here to neutralize near-term bulls.
    Res: 1.2528; 1.2554; 1.2576; 1.2597
    Sup: 1.2500; 1.2480; 1.2442; 1.2400

    The pair continues to trade within consolidative range above fresh lows at 1.5590, which now offers solid support. Yesterday’s bullish Outside Day close, which signals reversal, reinforced by daily MACD bullish divergence, so far did not result in more significant action higher, as consolidation tops at 1.5720/30 zone, also Fibonacci 38.2% of 1.5934/1.5590 and reinforced by daily 10SMA, remain intact for now. Positive tone, established on hourly chart, is fading, as 4-hour studies remains negatively aligned, which reduces chances of stronger corrective action for now. However, while 1.5590 base holds, scope for prolonged consolidative action exists, with attempts above 1.5730, expected to signal correction, which requires regain of 1.58 barrier, to be confirmed.
    Res: 1.5680; 1.5700; 1.5734; 1.5765
    Sup: 1.5618; 1.5590; 1.5550; 1.5500

    The pair remains firm and hits new multi-year highs, as fresh extension higher approached 119 barrier. Strong bullish tone dominates on all timeframes and favors further gains, which have 119.83, Aug 2007 high and psychological 120 barrier, also near Fibonacci 61.8% retracement of multi-year 147.68/75.55 descend, in immediate focus. Immediate support lies at 118.50, ahead of 118.00 higher low/38.2% of 116.32/118.96 upleg.
    Res: 119.00; 119.50; 119.83; 120.00
    Sup: 118.50; 118.00; 117.65; 117.33

    The pair remains under pressure and holds below 0.86 handle, as fresh weakness also broke below 0.8589 higher low, the last obstacle on the way to pivotal 0.8539 support. Near-term bears are now established, with yesterday’s long red candle, signaling an end of corrective phase, which requires confirmation on a break below 0.8539 low, also 50% retracement of 0.6007/1.1079 rally. This will signal resumption of larger downtrend and expose bear-trendline, connecting 0.9848, July 2008 peak and 0.8658, Jan 2014 low, at 0.8460. Break lower could drive the pair towards psychological 0.8000 support, in the near-term. Previous troughs at 0.8589 and 0.8646, offer immediate resistance, the latter also marks Fibonacci 38.2% of 0.8794/0.8564 descend, with any stronger rally, expected to hold below 0.8700, round-figure barrier and 4-hour double, 10/55 / 20/55EMA’s bear-cross.

    Res: 0.8589; 0.8600; 0.8646; 0.8680
    Sup: 0.8551; 0.8539; 0.8500; 0.8460

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