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

Discussion in 'Technical Analysis' started by WindsorBrokers, May 25, 2015.

  1. WindsorBrokers

    WindsorBrokers Content Contributor

    Feb 18, 2010
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    Asian trading saw probe below psychological 1.10 support, as the pair’s near-term price action remains biased down. Friday closed in red, just above 1.10 handle that was seen as brief consolidation, before fresh push lower. Fresh weakness penetrated daily cloud top at 1.0979, suggesting further weakness, as daily indicators continue to point lower. Also, long red weekly candle, after five-week recovery from 1.0519. 12 Apr higher low, suggests that short-term correction may be over. The pair focuses daily 55SMA at 1.0917 and 1.0880, Fibonacci 61.8% of 1.0519/1.1465 rally, close below which to confirm an end of corrective phase. Near-term studies are bearish, with hourly / 4-hour RSI at the border of oversold territory, suggesting prolonged consolidation, before fresh leg lower commences. Daily Kijun-sen line at 1.1062, marks initial resistance, ahead of daily 100SMA at 1.1133, expected to cap corrective rallies.

    Res: 1.1009; 1.1062; 1.1100; 1.1133

    Sup: 1.0962; 1.0917; 1.0880; 1.0858



    Overnight’s trading is shaped in tight Doji, with pivotal support at 1.5445, 19 May low, where Friday’s fall was contained by daily 20SMA, holding for now. Friday’s close in long red candle and below 200SMA, as well as weekly close in red, suggests that further easing cannot be ruled out, as daily indicators are in descending mode. Break below 1.5445 pivot and near-term base, is required to confirm daily failure swing formation and open way for fresh retracement of the upleg from 1.5086 to 1.5813. Near-term consolidation is so far capped by 4-hour Ichimoku cloud base, seeing limited upside attempts, as near-term studies are negative. Extended corrective rallies should be ideally capped under 1.56 barrier, while only break above pivotal 1.57 lower platform, would neutralize downside threats.

    Res: 1.5490; 1.5549; 1.5600; 1.5641

    Sup: 1.5445; 1.5400; 1.5364; 1.5258



    Near-term price action consolidates below fresh high at 121.76, posted overnight, maintaining positive tone, confirmed by last Friday’s and weekly close in long green candles. The pair is looking for final retest of key 122.01 barrier, peak of 10 Mar, to complete 122.01/118.31 corrective phase and signal resumption of larger uptrend. Bullish setup of daily studies supports the notion, however, overbought near-term technicals suggest hesitation on approach to 122.01 break point. Friday’s low at 120.62, marks key support and should contain extended dips.

    Res: 124.76; 122.01; 122.30; 122.81

    Sup: 121.46; 121.00; 120.83; 120.62



    The pair maintains bearish near-term tone, as reversal from recovery peak at 0.8161, extended in Asian session and tested psychological 0.78 support. Daily and weekly close in long red candles, confirms near-term weakness, also suggesting an end of recovery action from 0.7531, low of 02 Apr. Immediate focus is at 0.7780 support, trough of 05 May, also daily 55SMA and Fibonacci 61.8% of 0.7531/0.8161 rally, close below which to confirm bearish resumption. Daily 100SMA offers initial resistance at 0.7837, with daily 20SMA at 0.7935, marking a breakpoint.

    Res: 0.7835; 0.7865; 0.7900; 0.7930
    Sup: 0.7802; 0.7780; 0.7736; 0.7680


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