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

Discussion in 'Major Currency Pairs' started by WindsorBrokers, Jan 26, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    The Euro accelerated lower yesterday, on widely expected ECB’s QE decision. Continuation of strong bearish trend, marked fall of 2.1% yesterday, with fresh lows 12-year lows being posted on today’s extension below psychological 1.13 support. Yesterday’s long red candle maintains downside pressure, along with strong bearish tone, persisting on all timeframes. The pair now looks for 1.1210 target, Fibonacci 61.8% retracement of larger 0.8225/1.6039 ascend, with psychological 1.10 support, seen in extension. Oversold conditions, however, suggest consolidative / corrective actions, ahead of fresh push lower. Initial resistances lay at 1.1370, Asia’s high, then, ahead more significant 1.1458, former low of 16 Jan, with extended corrective attempts, expected to be limited at 1.1540, previous consolidation floor. Near-term focus now shifts towards Sunday’s elections in Greece, which may have further negative impact on the Euro.

    Res: 1.1312; 1.1372; 1.1400; 1.1458
    Sup: 1.1250; 1.1210; 1.1100; 1.1000


    Cable came under pressure with yesterday’s acceleration through previous low at 1.5032, completing near-term consolidative phase and fresh weakness eventually broke psychological 1.50 support. Yesterday’s long red candle, after repeated Dojis, confirms bearish resumption, with weekly close below 1.50 handle, required to open way towards next targets at 1.4910, Fibonacci 61.8% of multi-year 1.3501/1.7189 ascend and March 2013 higher base at 1.4830/12. Initial resistance lies at 1.5025, session’s high, ahead of solid barriers at 1.5050 zone, Fibonacci 38.2% of 1.5210/1.4955 downleg and previous range lows, which should ideally cap corrective attempts. Only extension and close above 1.5100/20 zone, round-figure barrier / Fibonacci 61.8% of 1.5210/1.4955 / yesterday’s intraday low, would undermine near-term bears and shift focus towards upper breakpoints above 1.52 barrier.

    Res: 1.5025; 1.5050; 1.5100; 1.5120
    Sup: 1.4950; 1.4910; 1.4830; 1.4812


    The pair regained some strength and bounced from 117.20 zone, where higher base is forming, however, lack of momentum to eventually clear pivotal 118.85 barrier, keeps the price action with limited upside. While daily 20SMA and Ichimoku cloud top cap rallies, near-term movements are expected to hold within 117.20/118.85 range. Mixed studies, with positive near-term and still weak daily technicals, are supportive for such scenario in the near-term. Sustained break and weekly close above 118.85, is required for bullish resumption towards next barriers at 120 zone, while repeated failures to break higher, would keep the downside vulnerable.

    Res: 118.85; 119.30; 119.57; 120.00
    Sup: 118.00; 117.73; 117.20; 116.90

    The pair remains under pressure and extends weakness of past one week, to complete 0.8031/0.8293 corrective phase and eventually take out psychological 0.8000 support, on today’s acceleration lower. As the pair is poised for strong weekly bearish close, end of week’s trading below 0.8000 handle, is needed to confirm strong bearish stance for further weakness. Immediate target at 1.7945, Fibonacci 61.8% retracement of 0.6007/1.1079, 2008/2011 ascend, is under pressure, with break here to open next support at 0.7700, July 2009 low. Corrective rallies are expected to hold below 0.8135, yesterday’s high and Fibonacci 61.8% retracement of 0.8234/0.7963 downleg.
    Res: 0.8031; 0.8066; 0.8097; 0.8135
    Sup: 0.7963; 0.7945; 0.7900; 0.7850


    Spot gold returns into near-term consolidative range, trading around the mid-point of 1279/1307 range, after yesterday’s rally probed again above psychological 1300 barrier and also posted marginally higher high at 1307. Daily close above 1300 handle, was not enough for sustained break for now, with further consolidation required ahead of fresh push higher. Overall positive near-term technicals and strong bullish tone of daily / weekly studies, sees the upside favored for eventual rally above 1300 level, towards initial targets at 1322/24, lower tops of 08 Aug / 17 July 2014. Consolidative action is required to hold above 1280 low, to keep bulls in play and prevent stronger pullback, expected on break and close below 1280 handle.
    Res: 1297; 1305; 1307; 1319
    Sup: 1290; 1285; 1280; 1272

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