Major pairs remain in existing directions after Paris attacks

EURUSD

The Euro quickly digested dramatic news during the weekend and showed no significant impact from Paris attacks on Friday. Week started with minor gap lower which was covered on early-Europe’s rally. Overnight’s retest at one-week consolidation floor at 1.0670 zone, proved that support is strong and would hold the downside in the near-term, for prolonged consolidation.
Bearish tone prevails on all timeframes, suggesting limited upside actions, ahead of resumption of larger bear-leg from 1.1494, 15 Oct peak.
Falling daily 10SMA offers initial barrier at 1.0796 and capped upside attempts for now, being reinforced by falling daily Tenkan-sen line, which lays ticks above.
Violation of the latter and consolidation range top at 1.0828 would signal extended upside attempts and expose next strong barriers: bear-trendline at 1.0900 and falling daily 20SMA / Fibo 61.8% of 1.1094/1.0673 downleg.
Res: 1.0760; 1.0796; 1.0828; 1.0883
Sup: 1.0673; 1.0658; 1.0600; 1.0560






GBPUSD

Cable remains neutral in the near-term, holding within narrow consolidation, after recovery from 1.5025 low, stalled at 1.5260, mid-point of 1.5495/1.5025 downleg and hesitation confirmed by Doji candle on Friday.
On the other side, overbought daily slow Stochastic suggests reversal, as bearish structure of the daily chart is reinforced by several bearish crosses of falling daily 10 and 20SMA, which moved below 200; 55 and 30SMA’s above 1.53 barrier, where also daily Ichimoku cloud base lies.
Supportive factor is penetration and close above weekly Ichimoku cloud base at 1.5191 that came after strong bullish weekly close.
Weakness under 1.5115, Fibonacci 61.8% of 1.5025/1.5262 recovery, is needed to confirm reversal, while alternative scenario requires break above strong 1.5300/30 resistance zone, to signal bullish resumption.


Res: 1.5235; 1.5262; 1.5300; 1.5330
Sup: 1.5172; 1.5143; 1.5115; 1.5089








USDJPY

The pair rallies strongly, after overnight’s 40-pips gap-lower opening and downside attempts being contained just under our initial support at 122.30, Fibonacci 38.2%, by rising daily Tenkan-sen line.
Near-term studies are gaining traction, after gap was filled and strong bullish acceleration pressures 122.97 pivot, lower top of last Friday.
Bullish structure of daily chart studies, favors scenario of completion of corrective phase and fresh attack at 123.59, 09 Oct fresh high, above which to open next target at 124.14, June 2007 high.

Res: 122.97; 123.06; 123.42; 123.59
Sup: 122.60; 122.37; 122.20; 120.85







AUDUSD

Recovery rally from 0.7014, 10 Nov low, remains capped by falling daily 20SMA, currently at 0.7139, following last Thursday’s strong acceleration higher, but action on Friday showed hesitation and was shaped in daily Doji candle.
Overall structure remains weak, as the price returns below daily Ichimoku cloud base at 0.7131, which now acts again as resistance.
Risk of lower top formation at 0.7156 exists and requires confirmation on break below 0.7085, low of two-day consolidation, which will also confirm hourly double-top formation.
Alternative scenario requires lift above daily Ichimoku cloud top at 0.7170 and violation of daily Kijun-sen line at 0.7197, to generate stronger bullish signals.

Res: 0.7131; 0.7156; 0.7170; 0.7197
Sup: 0.7097; 0.7085; 0.7069; 0.7047