USDJPY probes below n/t congestion; daily cloud top exposed

EURUSD

Fresh strength probes again above pivotal 1.0992/1.1001 resistances, daily cloud base/falling daily 20SMA, after past two days trading was capped here. Daily indicators are turning up, however, setup of daily MA’s is mixed and 20d Bollingers are contracting and signal limited action. Daily close above 20SMA, would be initial signal of fresh recovery leg that needs lift above 1.1108, daily Kijun-sen, to be confirmed and expose breakpoint at 1.1215, 10 July high and daily cloud top. Otherwise, downside risk would increase, in case of repeated failure to clear break 1.10 pivotal zone. Session low at 1.0967, offers initial support, guarding 1.0924 higher base and mid-point of the rally from 1.0807, 20 July low.

Res: 1.1039; 1.1059; 1.1108; 1.1215
Sup: 1.0967; 1.0924; 1.0900; 1.0868





GBPUSD

Cable remains within daily cloud, following last week’s sharp reversal that left triple-top at 1.5670 zone. Dips were so far contained at 1.5464, Friday’s low / near Fibonacci 61.8% of 1.5327/1.5673 upleg, with today’s action, bouncing higher, in corrective attempts. Structure of daily studies is turning bearish that sees limited upside attempts, before fresh leg lower. Initial barrier, daily 20SMA, lies at 1.5552, ahead of daily cloud top, reinforced by daily Tenkan-sen at 1.5570, below which, extended rallies should be ideally capped. Only daily close above here, would sideline downside risk and signal higher low formation.

Res: 1.5552; 1.5570; 1.5617; 1.5670
Sup: 1.5501; 1.5464; 1.5449; 1.5409






USDJPY

The pair came under pressure and eventually broke below near-term congestion, signaled by triple-Doji. Today’s fresh acceleration lower, weakens near-term technicals and signals possible test of strong 123.15/122.90 support zone. Immediate supports at 123.16/03, daily 20SMA / daily cloud top, are coming in focus, along with 122.90, higher low of 14 July, also Fibonacci 38.2% of 120.39/124.46 rally . Violation of this strong support zone, would be seen as a signal of stronger correction of 120.39/124.46 upleg and formation of lower platform at 124.45 zone. Conversely, while 123.15/122.90 support zone holds, overall bulls are expected to commence fresh leg higher for renewed attack at strong 124.36/72 resistance zone.
Res: 123.55; 123.82; 124.17; 124.46
Sup: 123.16; 123.03; 122.90; 122.43





AUDUSD

Aussie remains under strong pressure as last Friday’s fresh acceleration lower, eventually took out psychological 0.7300 support, to post fresh 6-yeal low at 0.7258 and leave daily/weekly bearish candles that signal further weakness. Bearish tone prevails on all timeframes, however, corrective attempts could be anticipated in the near-term, as daily studies are entering oversold territory. Initial resistance lies at 0.7300, former support and session high, ahead of falling daily 10SMA at 0.7366 and 0.7441, lower top and daily 20SMA, below which, extended rallies should be limited. The pair continues to look for near-term target at 0.7204, Fibonacci 76.4% of 0.6007/1.1079, 2008/2011 rally, loss of which is expected to open psychological 0.7000 support in the short-term.

Res: 0.7300; 0.7366; 0.7415; 0.7447
Sup: 0.7258; 0.7204; 0.7150; 0.7100