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Windsor Brokers - Short Term Technical Analysis for Majors (07:00 GMT)
The single currency continues to trend higher, with last Friday’s break and weekly close above 1.3400 barrier, opening way towards key medium-term resistance at 1.3500 zone. Rally peaked at 1.3477, just ahead of 2012 high at 1.3485 and 50% of 1.4938/1.2042 descend at 1.3490 that also marks the neckline of weekly inversed H&S pattern. The barrier is reinforced by weekly 200 day MA and seen as breakpoint for more significant gains, with 1.3800 zone, Fib 61.8%, expected to come in near-term focus on a clear break above 1.3500. Hourly studies are in descending mode, off overbought territory, however, strong 4h chart readings see room for attempt through 1.3500, with 20 day EMA and previous highs at 1.3400, offering good support for now. Only break here would signal further hesitation ahead of 1.3500 and allow for stronger reversal.
Res: 1.3477, 1.3485, 1.3490, 1.3525
Sup: 1.3400, 1.3370, 1.3350, 1.3300
Cable remains under heavy pressure, as recovery attempt from last Friday’s lows at 1.5750 zone, failed to sustain gains above important 1.5800 level. Fresh weakness, despite weekly close slightly above 1.5800, accelerated on weekly gap-lower opening, focusing initial 1.5700 target. Negative 1 and 4h chart structure keeps the downside favored, however, brief consolidation at 1.5700, is not ruled out, as hourly indicators are entering oversold territory. Below 1.5700, static support at 1.5634, 16 Aug low, is seen next, ahead of psychological 1.5600 level. Session high at 1.5784, offers initial resistance, while filling gap and extension above 1.5800 would delay immediate bears.
Res: 1.5745, 1.5784, 1.5800, 1.5823
Sup: 1.5700, 1.5660, 1.5634, 1.5600
The pair remains well supported, as last Friday’s rally penetrated psychological 91.00 barrier, to bring the next target at 92.00 zone in near-term focus. Corrective easing is expected to precede fresh rally, with previous high at 90.23, reinforced by 4h 20 day EMA, acting as initial support and dips ideally to be contained around 90.00 zone, also Fib 38.2% of 88.05/91.24 ascend.
Res: 91.24, 91.50, 92.00, 92.50
Sup: 90.55, 90.23, 90.00, 89.64
Near-term price action moves in a recovery mode, off last Friday’s fresh low at 0.9220, Fib 61.8% of 0.9109/0.9387 rally. Improved hourly conditions see potential for possible attempt at 0.9300 barrier, as the rally retraced 61.8% of 0.9323/0.9220 descend at 0.9287, where 20 day EMA limited gains for now. From the other side, prevailing negative tone on 4h chart does not see much upside potential, as long as the price holds below 0.9323, 24 Jan high. Only break here would sideline bears and shift focus higher. Otherwise, reversal under 0.9323, would risk lower top and fresh weakness towards 0.9220/00.
Res: 0.9287, 0.9300, 0.9323, 0.9345
Sup: 0.9270, 0.9255, 0.9220, 0.9200