EURUSD continues to head lower; falling 10SMA maintains downmove

EURUSD

The Euro remains under strong pressure and heads south, following yesterday’s repeated upside rejection at 1.1029, which was capped by falling daily 10SMA. Fresh weakness that closed below 1.10 handle, looks for full retracement of 1.0895/1.1071 correction and resumption of larger bull-leg off 1.1494, peak of 15 Oct.
Today’s fresh weakness dented very significant support at 1.0950, monthly bearish wedge support, clear break of which would trigger more significant downside, similar to the pattern formed in July 2012/July 2014.
Loss of 1.09 zone, which marks near-term base, will look initial target at 1.0844, 05 Aug low and 1.0807, 20 July low, in extension. The latter also marks floor of multi-month range and acts as pivotal support.
Falling daily 10SMA maintains the downmove and currently lies at 1.1000, guarding trendline resistance at 1.1028, which marks the first breakpoint. Attempts above here would sideline immediate downside threats, for prolonged consolidation.
Key barrier and next breakpoint 200SMA, lies at 1.1103.

Res: 1.0935; 1.0969; 1.1000; 1.1028
Sup: 1.0895; 1.0844; 1.0807; 1.0713






GBPUSD

Cable kept intact near-term bullish momentum, following yesterday’s dip to 1.5358 and subsequent recovery that averted further downside risk. Neutral signal was given by yesterday’s long-legged Doji candle, with price action being capped by daily Ichimoku cloud base, so far.
This may keep in play risk of fresh downside attempts, as daily momentum studies are bearishly aligned and slow Stochastic is turning lower.
Confirmation of fresh bearish extension requires break below daily 20SMA at 1.5376 and yesterday’s low at 1.5358, reinforced by daily 10SMA.
Conversely, penetration into daily cloud would sideline immediate risk, with lift above cloud top at 1.5471, required to confirm fresh bulls in play and re-focus key 1.5506 platform.

Res: 1.5443; 1.5471; 1.5495; 1.5506
Sup: 1.5400; 1.5376; 1.5358; 1.5340








USDJPY

The pair regained bullish tone on two-day bullish close and today’s fresh extension higher. Near-term price action has established above daily Ichimoku cloud top, with fresh extension higher, taking out 200SMA.
This turns setup of daily studies into full bullish mode, for eventual attack at 121.46, triple upside-rejection and near-term congestion top. Break here to confirm an end of near-term range-trading, entrenched between 120.00 and 121.46 and expose another significant barrier at 121.64, Aug high and top of multi-month congestion.
Initial support is offered by 200SMA at 121.05, with extended corrective attempts, expected to hold above daily Ichimoku cloud top at 120.70.

Res: 121.37; 121.46; 121.64; 122.00
Sup: 121.05; 120.70; 120.50; 120.24






AUDUSD

The pair maintains positive near-term tone, following bounce from 0.7064, which was shaped in three consecutive bullish daily closes. Rallies were so far limited by daily 20SMA at 0.7223, which also marks the mid-point of 0.7380/0.7064 downleg, with return below daily Ichimoku cloud top at 0.7176, to give negative signal and open way for deeper pullback.
Daily indicators are in the negative territory and for now are supportive for such scenario.
Otherwise, while daily cloud top holds, expect fresh attacks at 20SMA and in extension, attempt at 0.7280, falling daily 100SMA, break of which is needed to turn setup of daily MA’s into full bullish mode.

Res: 0.7223; 0.7259; 0.7280; 0.7306
Sup: 0.7176; 0.7150; 0.7124; 0.7100