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

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Dec 19, 2013.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro lost traction on post-Fed action, as initial reaction higher failed at 1.3809 and quick reversal below important 1.37 support weakened near-term structure, as the price dipped to 1.3648, retracing nearly 61.8% of 1.3527/1.3809 ascend. With near-term studies now being negatively aligned, increased risk of double-top formation is seen in the near-ter. Break below next supports at 1.3620/00 is required to confirm and allow for stronger corrective action towards 1.3520 higher platform. Negative scenario will also sideline short-term bulls and keep initial target and annual high at 1.3831 out of reach for now. Corrective rallies should be ideally capped at 1.3730 zone, to keep fresh bears intact.

    Res: 1.3708; 1.3730; 1.3781; 1.3809
    Sup: 1.3648; 1.3620; 1.3600; 1.3523



    Cable regained strength and spiked to 1.6484, marginally higher high yesterday, after extension of pullback from previous high at 1.6466, finally found ground near psychological 1.62 support and Fibonacci 38.2% retracement of 1.5853/1.6484 ascend. Freshly established positive tone keeps the upside favored, as easing from 1.6484 peak consolidates under 1.6400 barrier. Hourly studies are in corrective descend, while 4-hour indicators broke into positive territory and support fresh attempts higher. Initial target lies at 1.6500, above which to expose 1.6571/1.6617, August 2011 highs. To maintain positive structure, dips should not exceed 1.6350, previous peaks and 50% retracement of 1.6212/1.6484 upleg, reinforced by hourly 55DMA.

    Res: 1.6400; 1.6420; 1.6466; 1.6484
    Sup: 1.6350; 1.6315; 1.6300; 1.6270



    The pair surged through previous peak at 103.91 and psychological 104.00 barrier, on a rally from 102.60 zone, where higher platform was left. Resumption of larger uptrend, interrupted by near-term 103.91/102.50 corrective phase, looks for test of 105.00, round figure resistance and 105.58, Fibonacci 61.8% retracement of larger 2007/2011 124.14/75.55 downtrend. With positive tone dominating on lower timeframes studies, the upside remains favored, however, corrective actions on overbought conditions, may interrupt rallies. Previous tops at 103.38, also Fibonacci 38.2% retracement of 101.60/104.35 upleg, offer good support and should ideally contain corrective pullbacks.

    Res: 104.13; 104.35; 105.00; 105.58
    Sup: 103.70; 103.38; 103.00; 102.65



    The pair remains under pressure, as yesterday’s post-data spike higher was rejected under initial 0.8968 barrier, previous consolidation top and subsequent weakness posted fresh low at 0.8820, clearing another key support and former annual low at 0.8846. Negative tone on lower timeframes keeps the downside favored, with next targets laying at 0.0800, round figure support and 1.0769, October 2008 low. On the other side, oversold daily conditions see potential for corrective action in the near-term. Initial resistance lay at 0.8880 and 0.8900, with more significant lower platform at 0.8968, reinforced by falling 55DMA of 4-hour chart, offering solid resistance. Only break here would signal stronger corrective action and sideline bears.

    Res: 0.8880; 0.8900; 0.8968; 0.9000
    Sup: 0.8820; 0.8800; 0.8770; 0.8750


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