EURUSD
The Euro bounced off yesterday’s fresh low at 1.0711, in a corrective action on oversold near-term studies. Overall bears remain in play, with yesterday’s close in red and below daily 20SMA, confirming bearish stance towards next targets at 1.0686, Fibonacci 61.8% of 1.0461/1.1050, below which to confirm double-top for acceleration towards 1.0612/00, 19 Mar trough / Fibonacci 76.4% retracement. Also, long red monthly candle confirms strong bearish tone. Former low at 1.0800, offers initial resistance, below which recovery attempts were capped for now, ahead of yesterday’s high at 1.0844, reinforced by daily 10SMA and Fibonacci 38.2% of 1.1050/1.0711 downleg, where extended rallies should be capped. Only close above here would delay bears.
Res: 1.0758; 1.0790; 1.0800; 1.0844
Sup: 1.0711; 1.0686; 1.0612; 1.0600
GBPUSD
Yesterday’s long-legged Doji signals hesitation and near-term basing attempt above fresh low at 1.4753, with corrective bounce being so far capped at 1.4870 by 4-hour Kijun-sen / cloud base. Fresh acceleration lower signals hourly double-top and looks for retest of 1.4753 low, to resume larger bears. Falling daily 20SMA at 1.4902, caps short-term price action and marks a breakpoint. Close above here is required to sideline overall bears for possible attempt at next breakpoint at 1.50 zone, near-term congestion tops.
Res: 1.4808; 1.4845; 1.4870; 1.4902
Sup: 1.4750; 1.4721; 1.4686; 1.4650
USDJPY
The pair closed in Doji yesterday, following recovery rally’s hesitation above psychological 120 level and action being capped by daily 20SMA. Subsequent easing to 119.40, where dips found support, was corrective action, preceding fresh acceleration higher that attempts again at pivotal 120.35 barrier. Sustained break above 120.35/41 barriers, yesterday’s high / daily 20SMA / bear-trendline off 122.01 and 120.60, Fibonacci 61.8% of 122.01/118.31, to resume rally and shift focus towards key 122.01 peak. Otherwise, repeated rejection here would signal prolonged consolidation. Today’s low at 119.40, marks initial support and breakpoint.
Res: 120.35; 120.41; 120.60; 121.00
Sup: 120.13; 119.76; 119.40; 119.09
AUDUSD
The pair remains under pressure and eventually probed below 0.76 handle, on extension to fresh low at 0.7589. Yesterday’s repeated daily negative close and monthly close in red, confirm strong bearish stance for final push to 0.7558, low of 11 Mar, to fully retrace 0.7558/0.7936 corrective rally and resume larger downtrend on sustained break lower. Near-term consolidative action is under way, holding for now below the first breakpoint at 0.7710/20, daily 20SMA / Fibonacci 38.2% of 0.7936/0.7589 downleg. Only break here would delay bears for stronger corrective rally, before final push to pivotal 0.7558 support.
Res: 0.7640; 0.7662; 0.7710; 0.7720
Sup: 0.7589; 0.7558; 0.7500; 0.7450
The Euro bounced off yesterday’s fresh low at 1.0711, in a corrective action on oversold near-term studies. Overall bears remain in play, with yesterday’s close in red and below daily 20SMA, confirming bearish stance towards next targets at 1.0686, Fibonacci 61.8% of 1.0461/1.1050, below which to confirm double-top for acceleration towards 1.0612/00, 19 Mar trough / Fibonacci 76.4% retracement. Also, long red monthly candle confirms strong bearish tone. Former low at 1.0800, offers initial resistance, below which recovery attempts were capped for now, ahead of yesterday’s high at 1.0844, reinforced by daily 10SMA and Fibonacci 38.2% of 1.1050/1.0711 downleg, where extended rallies should be capped. Only close above here would delay bears.
Res: 1.0758; 1.0790; 1.0800; 1.0844
Sup: 1.0711; 1.0686; 1.0612; 1.0600
GBPUSD
Yesterday’s long-legged Doji signals hesitation and near-term basing attempt above fresh low at 1.4753, with corrective bounce being so far capped at 1.4870 by 4-hour Kijun-sen / cloud base. Fresh acceleration lower signals hourly double-top and looks for retest of 1.4753 low, to resume larger bears. Falling daily 20SMA at 1.4902, caps short-term price action and marks a breakpoint. Close above here is required to sideline overall bears for possible attempt at next breakpoint at 1.50 zone, near-term congestion tops.
Res: 1.4808; 1.4845; 1.4870; 1.4902
Sup: 1.4750; 1.4721; 1.4686; 1.4650
USDJPY
The pair closed in Doji yesterday, following recovery rally’s hesitation above psychological 120 level and action being capped by daily 20SMA. Subsequent easing to 119.40, where dips found support, was corrective action, preceding fresh acceleration higher that attempts again at pivotal 120.35 barrier. Sustained break above 120.35/41 barriers, yesterday’s high / daily 20SMA / bear-trendline off 122.01 and 120.60, Fibonacci 61.8% of 122.01/118.31, to resume rally and shift focus towards key 122.01 peak. Otherwise, repeated rejection here would signal prolonged consolidation. Today’s low at 119.40, marks initial support and breakpoint.
Res: 120.35; 120.41; 120.60; 121.00
Sup: 120.13; 119.76; 119.40; 119.09
AUDUSD
The pair remains under pressure and eventually probed below 0.76 handle, on extension to fresh low at 0.7589. Yesterday’s repeated daily negative close and monthly close in red, confirm strong bearish stance for final push to 0.7558, low of 11 Mar, to fully retrace 0.7558/0.7936 corrective rally and resume larger downtrend on sustained break lower. Near-term consolidative action is under way, holding for now below the first breakpoint at 0.7710/20, daily 20SMA / Fibonacci 38.2% of 0.7936/0.7589 downleg. Only break here would delay bears for stronger corrective rally, before final push to pivotal 0.7558 support.
Res: 0.7640; 0.7662; 0.7710; 0.7720
Sup: 0.7589; 0.7558; 0.7500; 0.7450
Recommended Content
Editors’ Picks
AUD/USD jumps above 0.6500 after hot Australian CPI data
AUD/USD extended gains and recaptured 0.6500 in Asian trading, following the release of hotter-than-expected Australian inflation data. The Australian CPI rose 1% in QoQ in Q1 against 0.8% forecast, providing extra legs to the Australian Dollar upside.
USD/JPY hangs near 34-year high at 154.88 as intervention risks loom
USD/JPY is sitting at a multi-decade high of 154.88 reached on Tuesday. Traders refrain from placing fresh bets on the pair as Japan's FX intervention risks loom. Broad US Dollar weakness also caps the upside in the major. US Durable Goods data are next on tap.
Gold price cautious despite weaker US Dollar and falling US yields
Gold retreats modestly after failing to sustain gains despite fall in US Treasury yields, weaker US Dollar. XAU/USD struggles to capitalize following release of weaker-than-expected S&P Global PMIs, fueling speculation about potential Fed rate cuts.
Crypto community reacts as BRICS considers launching stablecoin for international trade settlement
BRICS is intensifying efforts to reduce its reliance on the US dollar after plans for its stablecoin effort surfaced online on Tuesday. Most people expect the stablecoin to be backed by gold, considering BRICS nations have been accumulating large holdings of the commodity.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Fed might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.