USDJPY returns into triangle; pivotal 120 support holds for now

EURUSD

The Euro moves between daily 55 SMA and 20SMA, in the near-term action. Recovery attempts remain capped by daily 20SMA, despite Thursday’s spike to 1.1294. Fresh attempts under 200SMA, currently at 1.1185, suggest further downside, as near-term studies are weak. Bear cross of 10/20SMA’s, forming at 1.1235, reinforces resistance. Immediate supports lay at 1.1144/1.1127, daily 100 and 55SMA’s, ahead of key 1.1100 and 1.1086 supports. Last Friday’s / weekly close in red, maintain negative signals. Only sustained break above 1.1235 would ease immediate pressure.

Res: 1.1213; 1.1235; 1.1257; 1.1294
Sup: 1.1160; 1.1114; 1.1103; 1.1086






GBPUSD

Cable remains under pressure, with Friday’s dip to 1.5133, fresh 5-month low, confirming full retracement of 1.5163/1.5656 rally and signaling further extension of the downleg from 1.5656, 18 Sep high. Long red weekly candle that came after two weeks of recovery, confirms strong bearish stance. Setup of daily studies remains bearish and supports the notion, however, prolonged consolidation cannot be ruled out, as Friday’s close occurred above former target at 1.5163, which now acts as support again and contains near-term action for now. Daily slow Stochastic is oversold, but no reversal signal seen so far. Recovery attempts would face good resistance at 1.5287, Thursday’s peak, with extended rallies, to remain capped by falling 200SMA / Fibonacci 38.2% of 1.5656/1.5133, at 1.5335. On the downside, firm break below 1.5133 low, is expected to open 1.5085, Fibonacci 61.8% of 1.4563/1.5928 and psychological 1.5000 support, in extension.

Res: 1.5258; 1.5287; 1.5335; 1.5400
Sup: 1.5163; 1.5133; 1.5085; 1.5000







USDJPY

Near-term technicals are losing traction, following last Friday’s short-lived spike above 121 barrier and close below cracked triangle resistance. Return to triangle, suggests lack of strength for final break above triangle resistance at 120.40 and also cracked 200SMA, at 120.87. Dips were so far contained by daily 20SMA, which marks pivotal support at 120.10. Ideally, pullback from 121.22 peak, should be contained above 120 support, Fibonacci 61.8% of 119.21/121.22 rally, to keep upside targets in focus. Otherwise, attempts towards triangle’s lower boundary, currently at 119.30, could be expected on sustained break below 120 handle.

Res: 120.58; 120.85; 121.22; 121.65
Sup: 120.15; 120.00; 119.61; 119.21








AUDUSD

The pair trades in prolonged consolidation, entrenched within, 0.6974/0.7041 range, above last week’s fresh low at 0.6936. The action could be seen as consolidation, ahead of final push towards key 0.6906 support, low of 04 Sep, to mark full retracement of 0.6906/0.7278 corrective phase. Last Friday’s Doji confirms near-term sideways mode, as the price holds below pivotal falling daily 20SMA, currently at 0.7059, keeping the downside focused. Long bearish weekly candle, support scenario. However, extended correction cannot be ruled out, as daily slow Stochastic reversed from oversold territory. Sustained break above daily 20SMA, would be initial recovery signal

Res: 0.7041; 0.7059; 0.7093; 0.7147
Sup: 0.7000; 0.6974; 0.6936; 0.6906