USDTRY continues to rally, 2.90 barrier is out

EURUSD

The Euro fell sharply yesterday, after recovery rally was capped at 1.0690, initial resistance zone, daily 10SMA / 4-hour Ichimoku cloud base and subsequent weakness dipped to fresh 7-month low at 1.0564.
Bears dominate on all timeframes, favoring final push towards initial 1.0519 support, low of 13 Apr and key target at 1.0461, 2015low, posted on 13 Mar.
The pair closed in red yesterday, but above psychological 1.06 handle, along with long-legged daily candle, signaling extended consolidation, despite yesterday’s spike lower.
Hourly cloud’s base offers solid resistance at 1.0633, ahead of falling daily 10SMA at 1.0661, which is expected to limit extended rallies.
Only lift above falling daily 20SMA and lower top at 1.0755/61, would sideline immediate bears.

Res: 1.0633; 1.0661; 1.0690; 1.0755
Sup: 1.0591; 1.0564; 1.0519; 1.0495








GBPUSD

Cable failed to extend recovery from near-term base at 1.5055, which spiked to 1.5134 yesterday. The pair came under pressure again and returned below 1.51 handle, neutralizing for now bullish signal, which was given by yesterday’s Outside Day.
Structure of daily technicals remains bearish and favors fresh weakness and final attack at 1.5025/00 targets.
However, extended consolidation cannot be ruled out, as daily momentum studies are gaining traction.
Any extension above near-term consolidation top at 1.5134, should be capped under falling daily 20SMA, currently at 1.5216. Only break here would revive bulls.

Res: 1.5134; 1.5153; 1.5188; 1.5216
Sup: 1.5064; 1.5051; 1.5025; 1.5000








USDJPY

The pair remains at the back foot and pressures rising daily 20SMA at 122.47, following yesterday’s repeated rejection at 123 zone, daily 10SMA / Tenkan-sen.
Daily studies are losing momentum and risk is again shifting towards key supports at 122.29/20, which will come under strong pressure on break below pivot at 122.47, daily 20SMA, reinforced by hourly Ichimoku cloud base.
Alternative scenario requires sustained break above 123 barrier, which is reinforced by 4-hour Ichimoku cloud base, to revive bulls.

Res: 122.72; 122.95; 123.24; 123.59
Sup: 122.47; 122.29; 122.20; 121.75







USDTRY

Three consecutive days of strong bullish closing formed Three White Soldiers reversal pattern on daily chart. Yesterday’s rally cracked pivotal 2.89 barrier and finally broke above it today, on extension to 2.9040 so far. This marks Fibonacci 76.4% of 2.9301/2.8152 descend, leaving open way towards next targets at 2.9171, daily Ichimoku cloud base and 2.9300, 06 Nov high.
Near-term studies are bullish, while daily MA’s are turning into full bullish setup.
However, hesitation on approach to daily cloud base could be anticipated, as daily momentum studies are weakening and slow Stochastic is entering overbought territory.
Corrective dips should be ideally contained by daily 20SMA, currently at 2.8705.
Former lower platform at 2.8900, now acts as initial support, followed by daily 10SMA at 2.8832, which contains today’s action.

Res: 2.9040; 2.9171; 2.9232; 2.9300
Sup: 2.8900; 2.8832; 2.8705; 2.8600