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Windsor Brokers - Short Term Technical Analysis for Majors (07:45 GMT)

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

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro trades in a narrow range, after failing to sustain attempts above 1.38 handle, reinforced by daily Kijun-sen line as broken channel support line capped rallies. Narrow consolidation around 1.3780 is expected to precede fresh weakness towards 1.3748 base, as near-term technicals are negative. Break here to confirm lower top formation at 1.3874 and resume larger downtrend from 1.3965, towards 1.3720, 50% retracement of 1.3475/1.3965 upleg and 1.3700, higher base / daily 55SMA, with extension lower to open 1.3662, Fibonacci 61.8% retracement, reinforced by daily 100SMA. On the upside, 1.3800 offers immediate resistance, ahead of 1.3845, 25 Mar tops and pivotal 1.3867, 24 Mar peak, above which to shift near-term focus higher.

    Res: 1.3800; 1.3845; 1.3867; 1.3900
    Sup: 1.3780; 1.3759; 1.3748; 1.3720



    Cable extends near-term recovery phase off 1.6464, 24 Mar low and regained initial 1.6586 barrier, Fibonacci 38.2% retracement of the downleg from 1.6784 to 1.6464, approaching psychological 1.66 hurdle. Corrective action on overbought hourly studies should precede fresh attempt higher, as near-term technicals turned positive. Clear break above 1.66 barrier to confirm bottom at 1.6464, with extension to 1.6660 lower base and Fibonacci 61.8% retracement, required to complete 4-hour cup-and holder pattern and trigger further recovery. However, caution is required as daily technicals are negative and risk of lower top formation under 1.6660, remains in play. Solid support at 1.6545, Fibonacci 38.2% of 1.6464/1.6595 upleg, reinforced by hourly 55SMA, should ideally contain dips and keep freshly established bulls off 1.6464 in play.

    Res: 1.6584; 1.6600; 1.6624; 1.6660
    Sup: 1.6545; 1.6514; 1.6500; 1.6480



    The pair’s near-term structure weakens, as the price dipped below near-term consolidation range floor and strong support at 102.00, also cracking the next support at 101.80. Hourly indicators are establishing in the negative territory, while 4-hour ones are attempting below the midlines that increases downside pressure. Clear break below 101.80 handle, also 61.8% retracement of 101.26/102.67 upleg, to confirm lower platform formation at 102.65 zone and trigger fresh weakness for possible retest of strong 101.20 base. Alternative scenario requires break above 102.67 to bring bulls back in play and resume recovery off 101.20 through Fibonacci 61.8% barrier at 102.77, towards levels above psychological 103.00 resistance, where near-term congestion to at 103.75 stands.

    Res: 102.47; 102.67; 102.77; 103.15
    Sup: 102.00; 101.71; 101.50; 101.20



    The pair maintains positive near-term tone and continues to trend higher, with near-term price action stabilizing above 0.9200 handle, after posting fresh annual high at 0.9244. Overall bulls see scope for further gains towards psychological 0.9300 barrier and 0.9314, Fibonacci 100% expansion of the wave from 0.8889, 03 Mar low. However, rallies may be interrupted by consolidative /corrective actions, as near-term studies are overbought. Initial supports lay at 0.9215/00, ahead of 0.9150, Fibonacci 38.2% of 0.8994/0.9244 upleg and previous peaks at 0.9137/32, above which any stronger pullback should be ideally contained.

    Res: 0.9244; 0.9269; 0.9300; 0.9314
    Sup: 0.9215; 0.9200; 0.9150; 0.9132


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