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Technical Outlook for Majors 22/12/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Dec 22, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

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    [​IMG]EURUSD
    The Euro remains bearish and commences fresh phase lower, after completion of 1.2244/1.2568 correction, posting new lows at 1.2218. Last Friday’s close in red and below previous low, confirms bearish stance, with weekly bearish engulfing, signaling further acceleration lower in the short-term. Break below psychological 1.22 support, to open 1.2120/00, Fibonacci 138.2% projection of the downleg from 1.2598 / bull-trendline off 2005 low at 1.1640 and pivotal 1.2042, low of July 2012. Consolidative action is expected to precede fresh weakness, with first barrier at 1.23 zone, hourly lower platform / Fibonacci 23.6% of 1.2568/1.2219 downleg, ahead of 1.2352, 38.2% retracement / 18 Dec lower top and 1.2387, descending daily 20SMA, which is expected to cap extended corrective rallies. However, caution is required, as bullish divergence on daily MACD, continues to appear and close above daily 20SMA, would sideline bears and signal stronger recovery action.
    Res: 1.2300; 1.2352; 1.2387; 1.2435
    Sup: 1.2218, 1.2200; 1.2125; 1.2100


    [​IMG]GBPUSD</p>Cable trades above short-term range lows, which were retested on last-week’s acceleration lower. However, downside risk remains in play, as recovery attempts were so far capped at 1.5680, where daily 20SMA and Kijun-sen line, mark solid resistance. The notion is also supported by negative daily /weekly close, which maintains overall negative picture and sees risk of retesting 1.5540 base and resumption of larger downtrend on a break. Alternative scenario requires sustained break above 1.5680/90, recovery peak / Fibonacci 61.8% of 1.5783/1.5542, to sideline downside risk and move the price into upper part of short-term range.
    Res: 1.5680; 1.5690; 1.5755; 1.5783
    Sup: 1.5603; 1.5540; 1.5500; 1.5450


    [​IMG]USDJPY</p>The pair remains positive in the near-term and moves above pivotal 119.43/54 barriers, Fibonacci 61.8% retracement of 121.83/115.55 / 11 Dec lower top, after ending near-term consolidative phase. The pair focuses initial 120 barrier, ahead of 120.35, Fibonacci 76.4% of 121.83/115.55 downleg, above which to open pivotal 121.83 peak in extension. The notion is supported by positive near-term studies, also positive last Friday’s close and price action being underpinned by ascending daily 20SMA. Initial supports lay at 118.85/65, ahead of higher low at 118.24 and Fibonacci 38.2% retracement of 115.55/119.61 ascend at 118.06, where dips should be ideally contained.
    Res: 120.00; 120.35; 121.00; 121.50
    Sup: 119.61; 119.30; 119.00; 118.85


    [​IMG]AUDUSD
    The pair remains in consolidation phase above fresh low at 0.8105, posted on 17 Dec, with corrective attempts being so far capped by 0.8200, previous base, now initial resistance. Last Friday’s and weekly close in red, signal fresh weakness ahead, with limited upside action. Completion of daily bearish pennant, to extend the third wave from 0.8794, towards its 200% Fibonacci expansion at 0.8033 and psychological 0.8000 support. Prolonged corrective action requires extension above 0.82 barrier and daily Tenkan-sen line at 0.8239, to further delay bears for test of psychological 0.8300, then 0.8329, descending daily 20SMA and 0.8373, 11Dec lower top.
    Res: 0.8185; 0.8200; 0.8234; 0.8272
    Sup: 0.8120; 0.8105; 0.8033; 0.8000
     
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