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Technical Outlook for Majors 30/12/2014

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Dec 30, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
    Likes Received:
    The Euro continued to move lower, ending three-day 1.2163/1.2225 consolidation, to extend downleg from 1.2567, 16 Dec lower top, to 1.2120, Fibonacci 138.2% projection, on approach 1.2100 support, bull-trendline, connecting 2005/2010 lows. Yesterday’s close in red, with daily candle’s long upper shadow, signals strong selling pressure, as the pair approaches critical support zone between 1.2100 and 1.1875, 2010 low, break of which to complete monthly bearish flag and trigger fresh acceleration of multi-year descend from 1.6039, peak of 2008. Bearish near-term studies support further downside, as overall picture remains bearish, focusing immediate target at 1.2042, low of 2012. Psychological 1.22 barrier and consolidation top at 1.2225, reinforced by falling daily 10SMA, offer solid support and are expected to cap corrective rallies. Otherwise, stronger bounce would delay downside attempts towards 1.2042 and 1.2000 targets.
    Res: 1.2200; 1.2225; 1.2271; 1.2300
    Sup: 1.2141; 1.2120; 1.2100; 1.2042

    Cable remains in near-term consolidative phase above fresh low at 1.5484, posted on a probe below 1.55 support. Yesterday’s negative close, signals further weakness, with close below the 1.55 handle, required to confirm bearish resumption towards next targets at 1.5427, Aug 2013 low and1.5373, Fibonacci 76.4% of 1.4812/1.7189 ascend, as bears dominate on all timeframes. Consolidation top at 1.5584, reinforced by 4-hour 55EMA and 1.5600 barrier, also Fibonacci 38.2% of 1.5784/1.5484 downleg, are expected to limit recovery attempts.
    Res: 1.5545; 1.5584; 1.5600; 1.5635
    Sup: 1.5500; 1.5484; 1.5450; 1.5427

    [​IMG]USDJPY</p>The pair dips below near-term consolidation floor at 120 zone, signaling deeper pullback, after failing to regain psychological 121 barrier. Acceleration lower approached 119.00, round-figure support, with next strong support, laying at 118.80, Fibonacci 38.2% retracement of 115.55/120.81 upleg, reinforced by daily Kijun-sen line. This is seen as ideal reversal point for fresh attempts towards 121 and key barrier at 121.83, 08 Dec peak. On the other side, further weakness and close below 118.80, would sideline near-term bulls and signal stronger correction.
    Res: 119.76; 119.95; 120.13; 120.58
    Sup: 119.17; 119.00; 118.80; 118.18

    The pair trades in near-term consolidative phase above 0.81 level, which was cracked last week on a dip to 0.8086, but daily closes above 0.81, kept the support intact for now. Repeated Dojis suggest extended consolidation, before fresh action lower, as overall picture remains bearish. Rallies should be ideally capped at 8200 former base, while extension and close above 0.8227, daily 20SMA, would delay bears. Otherwise, near-term extension towards psychological 0.8000 target, remains favored scenario.
    Res: 0.8175; 0.8200; 0.8244; 0.8272
    Sup:0.8120; 0.8100; 0.8086; 0.8033

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