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Windsor Brokers - Short Term Technical Analysis for Majors (07:00 GMT)

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 21, 2013.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro ended week in the positive tone, closing just below psychological 1.37 barrier that was cracked last Friday. Annual high at 1.3710 remain in immediate focus, with break here to extend the third wave that commenced from 1.3103, 01/09 higher low and could travel to 1.3803, its 100% Fibonacci expansion and 1.3832, 61.8% Fibonacci retracement of larger 1.4938/1.2042 bear-phase. Bulls remain in play in near-term technicals, however, further consolidation cannot be ruled out, as studies on 4-hour chart are overextended. Current consolidation floor at 1.3658, along with previous peak at 1.3645, offers initial support, ahead of 1.3614/1.3587, 50% / 61.8% of 1.3472/1.3702, the latter being reinforced by 55DMA and seen as ideal reversal point. Key near-term supports and breakpoints lay at 1.3472/50, 16/10 low / 20/08 peak and only break here would neutralize near-term bulls.

    Res: 1.3702; 1.3710; 1.3750; 1.3800
    Sup: 1.3658; 1.3645; 1.3614; 1.3587



    Cable consolidates fresh gains on Friday, when the price peaked at 1.6223 and corrective pullback being established above 1.6140, consolidative floor. However, downside risk persists, as hourly indicators head south and 4-hour conditions being overextended. This suggests further consolidative / corrective action that may precede eventual push towards near-term target at 1.6259, 01/10 high, with further easing to be ideally contained at 1.6100, Fibonacci 61.8% retracement of 1.5892/1.6223 rally. Only break below 1.6058, 50% retracement and 55DMA, would neutralize immediate bulls. Daily studies remain positive, as the bull trendline holds, however, Friday’s Doji, suggests hesitation on approach to key near-term barrier at 1.6259.

    Res: 1.6177; 1.6200; 1.6223; 1.6259
    Sup: 1.6140; 1.6123; 1.6100; 1.6058



    The pair trades in near-term consolidative mode, off fresh low at 97.54, with upside being capped at 98.14 for now. Prevailing negative tone on 4-hour chart, keeps the downside at risk, with fresh weakness through 97.54, also near 61.8% retracement of 96.55/98.99 upleg, to open way for further easing and expose 97.13/00, 76.4% retracement / round-figure support. Conversely, fresh bulls, built on hourly chart, may prolong consolidative phase and possibly shift near-term focus higher, in case price sustain break above 98.27/44, Fibonacci 50% / 61.8% retracement of 98.99/97.54 downleg.

    Res: 98.14; 98.27; 98.44; 98.65
    Sup: 97.91; 97.76; 97.54; 97.13



    The pair remains supported and continues to trend higher, as upside acceleration through psychological 0.9600 barrier, tested near-term target at 0.9664, 14/06 peak and Fibonacci 61.8% expansion of the third wave from 0.9280 higher low. Break here to open psychological 0.9700 barrier and 0.9714, 50% retracement of larger 1.0581/0.8846 descend, net targets. Extension of the third wave from 0.9280 higher low, could travel to 0.9905/18, Fibonacci 100% expansion and 61.8% retracement of 1.0581/0.8846, once 0.9700/14 barriers are cleared. Near-term studies are positive, however, corrective easing is seen as likely near-term scenario, as 4-hour RSI is in overbought territory and studies are overextended. Immediate supports lay at 0.9641/00, with previous peak at 0.9526, also 38.2% retracement of 0.9280/0.9678 rally, expected to contain.

    Res: 0.9678; 0.9700; 0.9714; 0.9770
    Sup: 0.9641; 0.9600; 0.9546; 0.9526


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