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Technical Outlook for Majors 21/01/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 21, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro continues to move in narrow-range consolidative mode, off fresh low at 1.145, ahead of tomorrow’s ECB meeting. Near-term tone remains weak, as 1.16 barrier stays intact for now, limiting possible stronger rallies for retest of correction high of 19 Jan at 1.1637 and extension towards daily Tenkan-sen line at 1.1664 and descending daily 10SMA at 1.1690, where stronger rallies should be ideally capped. Overall negative structure keeps downside in focus and acceleration lower is expected in case of loss of overnight’s low at 1.1540, to expose psychological 1.1500 support and key 1.1458 low.
    Res: 1.1586; 1.1600; 1.1637; 1.1650
    Sup: 1.1540; 1.1500; 1.1458; 1.1400

    Cable continues to trade in consolidative phase, off fresh low at 1.5032, with overall negative picture, suggesting limited upside action, before fresh push lower. Stall of initial recovery attempt at 1.5267 and subsequent easing, which was so far capped by daily 10SMA, maintained weak near-term tone. Upticks are for now seen as corrective movements and downside will remain favored in near-term, while price action holds below descending daily 20SMA, currently at 1.5282. Only close above here would sideline immediate risk of testing initial target at 1.5000 and further easing, seen on a break lower.
    Res: 1.5197; 1.5232; 1.5267; 1.5300
    Sup: 1.5133; 1.5100; 1.5055; 1.5032

    [​IMG]USDJPY</p>Near-term structure weakens after today’s fresh weakness fully reversed yesterday’s gains, which were capped at pivotal 118.75/85 resistance zone, daily Ichimoku cloud top / Fibonacci 61.8% retracement of 120.72/115.83 downleg / daily 20SMA. As the pullback from yesterday’s high at 118.85 retraced over 50% of 115.83/118.85 rally, risk of further easing exists and is expected to increase in case of loss of 117.00/116.90, Fibonacci 61.8% retracement / higher low of 19 Jan. Weak daily studies support further weakness, with today’s close in red, expected to confirm. Only break and close above daily cloud top / 20SMA, would neutralize immediate downside risk and return focus towards the upper targets.
    Res: 118.00; 118.24; 118.85; 119.30
    Sup: 117.28; 116.90; 116.31; 116.05

    The pair remains in near-term directionless mode, entrenched within 0.8150/0.8250 range, after yesterday’s weakness was contained above pivotal daily 20SMA and today’s fresh strength erased losses. Neutral tone of near-term studies sees prolonged sideways movements, with break of either boundary, required to establish fresh direction. Daily studies are mixed, with positively aligned MACD and 20SMA underpinning, offset for now by RSI in neutrality zone and descending 55 and 100SMA’s. Lift above 0.8322, Fibonacci 38.2% retracement of 0.8794/0.8031 downleg and 0.8353, daily 55SMA, is required to bring bulls fully in play and signal stronger recovery. Conversely, loss of daily 20SMA at 0.8146, will be bearish and shift focus towards 0.8031, low of 07 Jan and psychological 0.8000 target.
    Res: 0.8254; 0.8293; 0.8322; 0.8373
    Sup: 0.8153; 0.8146; 0.8131; 0.8066

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