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

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 27, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro maintains positive tone and consolidates around 1.37 handle, previous peak and daily Kijun-sen line, which was dented on Friday’s spike to 1.3738, level last time traded on 02 Jan. Stretched 4-hour studies, see scope for extended consolidation, with immediate support at 1.3660, consolidation floor, reinforced by 38.2% of 1.3529/1.3838 upleg; hourly 55DMA and daily cloud top, loss of which would trigger corrective action towards 1.3634, 50% retracement and 1.36 zone, Fibonacci 61.8% / 20/55DMA’s bullish crossover, above which stronger dips should be contained. On the upside, clearance of 1.3700/38 barriers would open strong 1.38 resistance zone, December’s congestion tops.

    Res: 1.3700; 1.3738; 1.3800; 1.3815
    Sup: 1.3660; 1.3634; 1.3600; 1.3580



    Cable lost traction and ended Friday’s trading in red after strong pullback from fresh peak at 1.6668, probed below 1.65 handle and found temporary footstep at 1.6472. Reversal retraced over 50% of 1.6307/1.6668 rally that weakened near-term structure, as hourly studies turned negative and 4-hour indicators approaching the midlines. Larger picture bulls, however, remain intact and expected to resume higher after completion of corrective phase. Bounce off 1.6472 that probes above 1.65 barrier, would face broken bull-trendline off 1.6307 and 1.6550, above which to signal further recovery and avert immediate downside risk. Break above 1.66 hurdle is required to confirm. On the other-side, limited corrective action would keep the downside vulnerable, as slide below 1.65 handle would bring fresh weakness for retest of 1.6472 and 1.6445, Fibonacci 61.8% of 1.6307/1.6668; 1.6400, psychological support in extension.

    Res: 1.6550; 1.6600; 1.6622; 1.6642
    Sup: 1.6500; 1.6472; 1.6445; 1.6400



    The pair enters near-term corrective phase off fresh low at 101.75, after two-legged weakness off 104.83, 23 Jan lower top slid through important 102.84 and 102.00 supports. Overall negative tone, established after repeated rejections at 105 hurdle and acceleration lower, keep the downside favored in the near-term, with fresh leg lower seen on a completion of corrective rally. Crack of initial 102.70 resistance, opens more significant 103.00 barrier, Fibonacci 38.2% of 104.83/101.75 descend, reinforced by hourly 55DMA and pivotal 103.57, 24 Jan lower top / near 61.8% retracement, where rallies should be ideally capped. Otherwise, break here would sideline near-term bears and shift focus higher. Initial support lies at 102.50, daily cloud top, ahead of 102.00 and 101.75 low, loss of which to confirm bearish resumption.

    Res: 102.84; 103.00; 103.29; 103.57
    Sup: 102.50; 102.00; 101.75; 101.60



    The pair remains under pressure, as fresh weakness posted new low at 0.8658, initial target of Fibonacci 61.8% expansion of the wave from 0.9755 lower top. Corrective bounce above 0.87 barrier, so far holds below initial 0.8745/55 resistance, Fibonacci 38.2% retracement of 0.8886/0.8658 descend / hourly 55DMA / previous low, with break higher to confirm recovery mode. North heading hourly indicators support the notion, as 4-hour indicators are starting to reverse. However, overall negative structure keeps the downside at risk, with regain of minimum 0.88 barrier, required to ease bear-pressure and delay fresh bears. On the downside, psychological 0.87 level offers initial support, ahead of 0.8676, session low and 0.8658, loss of which to resume larger bears and expose 0.8600 and 0.8543, 50% retracement of multi-year 0.6007/1.1079 rally.

    Res: 0.8745; 0.8755; 0.8800; 0.8832
    Sup: 0.8700; 0.8676; 0.8658; 0.8600


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