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

Discussion in 'Major Currency Pairs' started by WindsorBrokers, May 19, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro probed levels below important 1.3670 support, with broken bull-trendline off 1.3665 previous high, containing dips at 1.3647 for now. Quick recovery to 1.37zone, where gains are so far capped by daily cloud base, may signal hesitation ahead of fresh weakness and clear break lower which is required to confirm double-top pattern formation and trigger further weakness. Failure to complete the third weekly close in red, could be supportive for near-term pause in weakness and possible stronger recovery. Hourly studies are neutral, as the price trades in a narrow range around 1.37 handle, however, overall picture remains bearish and unless price regains 1.3770/80, lower platform / Fibonacci 38.2% of 1.3992/1.3647 descend and 1.3800 round figure barrier, downside risk would remain in play. Loss of 1.3647 temporary handle to open 1.3623, 200 SMA and psychological 1.36 support initially, with 1.3519, 38.2% retracement of larger 1.2754/1.3992 upleg, seen in extension. Rally above 1.38 handle would signal fresh upside.

    Res: 1.3731; 1.3779; 1.3800; 1.3820
    Sup: 1.3700; 1.3683; 1.3647; 1.3619



    Cable holds overall bearish tone, with loss of 1.68 handle posting fresh low at 1.6730, 50% retracement of 1.6464/1.6995 ascend. Consolidative action through 1.68 barrier, improved near-term structure, however, upside is seen limited while the price holds below 1.69 breakpoint, near 61.8% retracement of 1.6995/1.6730 and lower top of 12 May, with fresh leg lower expected to commence from levels below this point. Fresh weakness through 1.67 handle to open Fibonacci 61.8% retracement level at 1.6667, next, with 100SMA at 1.6627 and 1.66, round – figure support seen in extension.

    Res: 1.6839; 1.6872; 1.6900; 1.6937
    Sup: 1.6800; 1.6782; 1.6752; 1.6730



    The pair maintains negative tone after fall below 102 handle, re-tested strong supports and short-term base at 101.40/20 zone. As the structure turned negative, immediate risk is shifted towards the downside, with clear break below 101.20 base, required to confirm. Immediate target lies at 101 support and more significant 100.74, 04 Feb low, loss of which to signal bearish resumption of larger downtrend from 105.43, 02 Jan year-to-date high and focus psychological 100 support. Further consolidation above 101.20 would signal extended sideways movements, while break above 103 barrier is required to bring bulls back in play.

    Res: 101.66; 102.00; 102.11; 102.35
    Sup: 101.20; 101.00; 100.74; 100.00



    The pair continues to trade in near-term consolidative mode below fresh high at 0.9407, with downside being so far protected at 0.9330 zone, Fibonacci 38.2% retracement of 0.9201/0.9407 upleg. Further weakness is not ruled out as hourly studies are bearish and 4-hour technicals are turning negative, however, extension lower should hold above 0.9300 psychological / 50% retracement support to keep overall bullish picture intact. Fresh leg higher needs to clear 0.9400 barrier for eventual push towards key 0.9460 peak and near-term target. Conversely, loss of 0.93 handle would sideline bulls.

    Res: 0.9372; 0.9407; 0.9460; 0.9500
    Sup: 0.9325; 0.9300; 0.9280; 0.9350


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