Cable remains under pressure; focus at next target at 1.5168

EURUSD

The Euro left two long red daily candles, turning the sentiment into firm bearish mode. Initial weakness off 1.1318, 02 Sep upside rejection, accelerated yesterday on expected dovish ECB’s stance, falling through daily Ichimoku cloud top, on extension to 1.1086, yesterday’s low. Near-term price action consolidates around daily cloud top at 1.1120, where yesterday’s close occurred. Overall bearish structure sees scope for further downside, with limited upside attempts, seen as selling opportunities. Initial barrier lies at 1.1143, Fibonacci 23.6% of 1.1331/1.1086 downleg, ahead of 1.1180, Fibonacci 38.2%. Extended rallies should stay capped under 1.1208, 50% retracement / daily 20SMA. Fresh weakness and close inside daily cloud, to confirm bearish resumption and expose targets at 1.1015, 18/19 Aug lows and psychological 1.1000 support, also daily Ichimoku cloud base.

Res: 1.1143; 1.1180; 1.1208; 1.1242
Sup: 1.1114; 1.1086; 1.1015; 1.1000








GBPUSD

Cable remains in a steep downtrend from 1.5816, 28 Aug high, closing in red for the eight consecutive days. Yesterday’s fresh weakness met initial target at 1.5246, 50% of 1.4563/1.5928 rally and posted fresh three-month low at 1.5217. Brief consolidation is likely to precede fresh weakness towards next target at 1.5168, 01 June low, as bears dominate on all timeframes. However, daily studies are oversold and suggest correction in the near-term, with no reversal signal generated so far. Former key support at 1.5327, now acts as initial resistance, guarding daily 200SMA at 1.5356, which is expected to cap upside attempts. The pair in on the track for repeated weekly close in red that confirms bearish stance.

Res: 1.5257; 1.5311; 1.5327; 1.5406
Sup: 1.5217; 1.5189; 1.5168; 1.5085









USDJPY

The pair lost traction and fell back, after recovery attempts were capped by 200SMA at 120.70. Yesterday’s bearish acceleration cracked initial support at 119.18, 02 Sep low, on extension to 119.09, confirming lower top at 120.70 and signaling extension of downmove from 121.64, 31 Aug high. Consolidation above 119.09 low is expected to precede fresh leg lower, which will be looking for targets at 118.89 and 118.24, 50% and 61.8% retracement of 116.13/121.64 rally. Upticks are expected to hold below 120.17, session high. Overall structure remains bearish, with the pair poised strong bearish weekly close.

Res: 119.55; 120.17; 120.38; 120.70
Sup: 119.09; 118.89; 118.24; 117.55







AUDUSD
The pair broke below two-day consolidation floor and posted fresh 6 ½ year low at 0.6957. This signal resumption of larger downtrend, with extension of the downleg from 0.7204, 28 Aug high, to look for projected targets at 0.6933, Fibonacci 161.8% projection and 0.680, 200% projection, in extension. Daily indicators entered oversold territory and require caution, however, no reversal signal seen so far. Session high at 0.7019, marks initial resistance, ahead of yesterday’s top at 0.7061 and falling daily 10SMA at 0.7088, which should ideally cap. Conversely, break here would be seen as initial signal of corrective phase and expose next strong barriers at 0.7204/20, lower top of 28 Aug / daily 20SMA.

Res: 0.7000; 0.7019; 0.7061; 0.7151
Sup: 0.6957; 0.6933; 0.6870; 0.6800