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

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Oct 13, 2014.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro bounced off 1.2600 zone, low of the last week, where pullback from 1.2790 peak found temporary support. Rally reached 1.27 resistance area and 50% retracement of 1.2790/1.2603 downleg so far, with sustained break here and 1.2720/30, Fibonacci 61.8% / daily 20SMA, required to resume recovery towards 1.2790, recovery peak of 09 Oct and 1.2800, Fibonacci 61.8% retracement of larger 1.2993/1.2499 descend. Last Friday’s close in red, sees the downside at risk, as positive weekly close suggests basing attempt, but long upper wick of last week’s candle warns of existing selling pressure. Regain and close above 1.28 resistance zone is required to mark higher low at 1.2603 and signal resumption of near-term recovery from 1.2499, 03 Oct low. Otherwise, increased downside risk will be in play, while the price holds below initial 1.27 barrier.

    Res: 1.2695; 1.2720; 1.2790; 1.2800
    Sup: 1.2660; 1.2645; 1.2632; 1.2603



    Cable maintains overall negative tone, with last Friday’s close in red, supporting the notion. On the other side, near-term studies are showing signs of improvement, after the price bounced off last week’s low at 1.6000. Regain of levels above 1.61 barrier, requires break above 1.6130 lower platform, to improve 4-hour picture and move indicators from neutrality zone, as hourly studies turned positive. Break higher to signal fresh strength, signaled by positive weekly close and shift focus towards breakpoints at 1.6212/25, daily 20SMA / recovery peak of 09 Oct, with sustained break here to resume recovery attempt off 1.5950, 03 Oct low. Failure to clear initial 1.6130 barrier, would signal prolonged consolidative action, with revived downside risk in play.

    Res: 1.6130; 1.6142; 1.6173; 1.6200
    Sup: 1.6080; 1.6052; 1.6030; 1.6000



    The pair remains under pressure and extended fresh weakness to the upper boundary of strong 107.00/106.80 support zone, round figure support / 16 Sep low. Daily and weekly close in red, signal further weakness and extension of pullback from 110.07, peak of 01 Oct, as near-term studies are negative. Extension below 107.00/106.80 support zone to open immediate support at 106.64, Fibonacci 38.2% retracement of 101.07/110.07 ascend, ahead of next significant support at 105.57, 50% retracement / daily 55SMA. Corrective rallies should be ideally capped at 108.15, Fibonacci 38.2% of 109.89/107.04 downleg and former consolidation range tops, in order to keep bears intact.

    Res: 107.51; 108.15; 108.47; 108.73
    Sup: 107.00; 106.80; 106.64; 106.00



    Near-term studies remain weak, as the price action moves just above consolidation range floor at 0.8641, following pullback from last week’s recovery rejection at 0.8896. Last Friday’s close in red, maintains negative tone, with, weekly candle’s long upper wick, showing strong selling pressure. Eventual break below 0.8641, to signal fresh extension of larger downtrend from 1.1079, July 2011 peak, towards 0.8543, 50% retracement of 0.6007/1.1079 ascend. On the other side, prolonged consolidative action could be expected on upside extension above corrective high and session’s high at 0.8748, which also marks Fibonacci 38.2% retracement of 0.8896/0.8650 downleg and is reinforced by descending hourly 55SMA. Only break above 0.8896 would neutralize bears.

    Res: 0.8748; 0.8783; 0.8800; 0.8832
    Sup: 0.8650; 0.8641; 0.8600; 0.8543


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