The Euro continues to move lower and establishes below 1.23 handle, following yesterday’s repeated close in red and below 1.2300. Month’s low at 1.2244 is in near-term focus, with break here to clear way for extension towards short-term target at 1.2042, low of July 2012. Larger picture’s bears are fully in play, with near-term price action trading in narrow consolidation above fresh low at 1.2264, capped under 1.23 barrier. Oversold studies of lower timeframes suggest that corrective bounce cannot be ruled out, with initial resistance at 1.2350 lower top, yesterday’s high and 1.2400, daily 20SMA. Daily close below here to keep immediate bears intact, while close above would further delay bears for 1.2452, Fibonacci 61.8% of 1.2568/1.2264 downleg and 1.2475, lower tops of 17/18 Dec.
Res: 1.2300; 1.2350; 1.2380; 1.2400
Sup: 1.2264; 1.2244; 1.2200; 1.2150
GBPUSD
Cable bounced from short-term range lows, which were retested on post-Fed’s acceleration lower and eases immediate downside pressure. Near-term action entered neutral, consolidative mode, hovering around range’s mid-point, where daily 20SMA / Kijun-sen cap for now at 1.5680. Yesterday’s positive close requires close above the latter, to re-focus range’s upper boundary. Otherwise, risk of re-testing base at 1.5540, will remain on the table, as larger picture remains bearish.
Res: 1.5675; 1.5700; 1.5734; 1.5783
Sup: 1.5630; 1.5600; 1.5540; 1.5500
USDJPY
The pair maintains positive near-term tone, as fresh extension of bounce from 115.55, 16 Dec low, closed above daily 20SMA and reached pivotal 119.43/54 zone, Fibonacci 61.8% retracement of 121.83/115.55 / 11 Dec lower top pullback. Clear break here is required to offset hesitation signals, given by yesterday’s long-legged Doji and confirm reversal from 115.55. Overall bullish structure supports the notion. Rising hourly 20EMA, underpins the action at 119, ahead of bull-trendline, drawn off 115.55 low, currently at 118.82. Corrective dips should be ideally contained at 118.25 higher low, while break lower and loss of 118 handle, Fibonacci 38.2% of 115.55/119.45, would sideline immediate bulls.
Res: 119.45; 119.54; 120.00; 120.35
Sup: 119.00; 118.82; 118.50; 118.25
AUDUSD
The pair trades in extended consolidation above fresh low at 0.8105, posted on 17 Dec, with previous base at 0.8200, offering initial barrier and capping for now. Yesterday’s positive close suggests delay in bearish action of extended third wave from 0.8794, which is looking for test of 200% Fibonacci expansion at 0.8033 and psychological 0.8000 support. However, longer upper shadow of the candle, signals strong selling pressure and sees the upside attempts limited. Extension above 0.82 barrier to open daily Tenkan-sen line at 0.8239, close above which to further delay bears for psychological 0.8300 and pivotal 0.8353/73, daily 20SMA / 11Dec lower top.
Res: 0.8200; 0.8234; 0.8272; 0.8300
Sup: 0.8143; 0.8105; 0.8033; 0.8000
Recommended Content
Editors’ Picks
EUR/USD stabilizes near 1.0800 as trading action turns subdued
EUR/USD holds steady near 1.0800 on Thursday and remains on track to end the day in negative territory following upbeat macroeconomic data releases from the US. The action in financial markets turn subdued as trading volumes thin out heading into Easter holiday.
GBP/USD extends sideways grind above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth help the USD stay resilient against its rivals and limits the pair's upside.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.