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Technical Outlook for Majors 22/01/2015

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 22, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro holds within a narrow-range, awaiting the verdict from today’s meeting of ECB. Near-term tone remains weak, with yesterday’s probe above daily, sideways-moving Tenkan-sen that spiked to a fresh high at 1.1680, being short-lived. Overall bearish technicals keep focus at the downside, as past few days consolidation stays capped by descending daily 10SMA, with renewed weakness through fresh 11-year low at 1.1458, expected to focus next targets at 1.1375, Nov 2003 low, ahead of Fibonacci 61.8% retracement of multi-year 0.8225/1.6039 ascend at 1.1210. Alternative scenario sees break through current range top, reinforced by daily 10SMA, required for an acceleration towards breakpoints at 1.1850, daily 20SMA at 1.1870, 12 Jan lower top, to neutralize bears and signal stronger recovery, on close above the latter.
    Res: 1.1627; 1.1680; 1.1700; 1.1754
    Sup: 1.1540; 1.1500; 1.1458; 1.1400

    Cable remains in near-term consolidative phase above fresh low at 1.5032, with upside attempts being capped at 1.5267. Overall negative picture sees downside favored and fresh push lower is expected after completion of consolidation, confirmed by neutral near-term studies and yesterday’s Doji candle. Repeated failures to close above daily 10SMA, currently at 1.5155, keep the downside under pressure. Upticks are for now seen as corrective movements while price action holds below descending daily 20SMA, currently at 1.5261. Break and close above the latter is required to sideline immediate risk of testing initial target at 1.5000 and acceleration lower, seen on a break.
    Res: 1.5155; 1.5178; 1.5197; 1.5232
    Sup: 1.5100; 1.5075; 1.5055; 1.5032

    [​IMG]USDJPY</p>The pair regains 118 handle, on a bounce from yesterday’s low at 117.16, reached on a pullback from 118.85, fresh recovery high, reinforced by daily cloud top / 20SMA. Yesterday’s close in red and weakening daily studies, keep the downside vulnerable, with increased risk of fresh weakness, seen while strong 118.85 barrier caps. On the other side, positively aligned near-term studies see room for renewed attempts towards 118.85 breakpoint, close above which to confirm trough at 117.16 and trigger fresh acceleration higher. Otherwise, repeated rejection at 118.85 would signal renewed weakness, with firm bearish tone to be established on sustained break below 117.16.
    Res: 118.32; 118.85; 119.30; 120.00
    Sup: 117.73; 117.16; 116.90; 116.31

    Yesterday’s strong acceleration lower left lower top at 0.8232, to nearly fully retrace corrective rally from 0.8031 to 0.8292. Near-term studies turned bearish, with negative setup of daily chart technicals, keeping focus at initial 0.8031 support, violation of which to signal an end of near-term consolidative phase and resumption of larger downtrend towards immediate targets at psychological 1.50 level and 0.7945, Fibonacci 61.8% retracement of multi-year 0.6007/1.1079 ascend. Only recovery and close above 0.82 barrier would sideline immediate downside risk .
    Res: 0.8110; 0.8150; 0.8200; 0.8232
    Sup: 0.8054; 0.8031; 0.8000; 0.7945

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