EURUSD hith fresh 3 1/2 month highs on strong bullish acceleration

EURUSD

The Euro rallied strongly yesterday, boosted by significantly weaker dollar and broke above pivotal barriers at 1.0980, former range tops and 1.1005, daily Ichimoku cloud top.
Rally also took out 1.1052 /60 resistance zone, 200SMA / 15 Dec top and also cracked 1.1122, Fibonacci 61.8% of 1.1494/1.0519 descend.
Trading closed at 1.1100, marking break above important barriers and giving strong bullish signal.
Corrective easing on overbought conditions was short-lived, despite indication of stronger pullback. Dips were contained above broken 200SMA, initial support, which guards 1.1015/00 support area, Fibonacci 38.2% of 1.0808/1.1144, three-day bullish acceleration / psychological support.
Renewed strength, driven by strong bullish sentiment, broke above yesterday’s high at 1.1144 and eyes round-figure resistances at 1.1200, with possible extension to 1.1264, Fibonacci 76.4% of 1.1494/1.0519 descend.
Caution on daily slow Stochastic, which entered overbought territory.
Res: 1.1200; 1.1264; 1.1300; 1.1350
Sup: 1.1100; 1.1068; 1.1052; 1.1015;






GBPUSD

Cable remains supported and posts fresh highs on extension of yesterday’s strong rally that took out daily 30SMA barrier at 1.4510 and establishes above 1.4612, Fibonacci 61.8% retracement of 1.4943/1.4078.
Fresh rallies are looking for extension of the second leg of recovery from 1.4078 low and eyeing next targets at 1.4740/55, double – Fibonacci resistance: 76.4% of 1.4943/1.4078 and 38.2% of larger 1.5816/1.4078 fall/ descending daily 55SMA.
Daily indicators are heading north, with strong bullish setup of 10/20/30 SMA’s and another strong bullish signal on weekly RSI / slow Stochastic reversal from overbought territory.
Broken 30SMA now acts as strong support at 1.4500.

Res: 1.4700; 1.4740; 1.4755; 1.4803
Sup: 1.4560; 1.4500; 1.4442; 1.4377








USDCAD

The pair slumped yesterday and formed bearish Outside Day pattern, on close in long red daily candle.
Fresh weakness of the US dollar and surge in oil prices put the pair under increased pressure.
Break below 1.3906, former low, marked an end of two-day consolidation and accelerated through daily 55SMA, at 1.3837 and pivotal daily higher base at 1.3800.
Fresh extension below yesterday’s low at 1.3754, which marks 50% retracement of 1.2829/1.4688 ascend, penetrated daily Ichimoku cloud top at 1.3750 and pressures 1.3700, round-figure support.
Daily indicators are in firm bearish mode, while 10/20/55 MA’s turned into bearish setup, favoring further downside, with extension towards 100SMA at 1.3539, to be anticipated.
Daily slow Stochastic is oversold, but continues to head south, suggesting further weakness, before initial bullish signal is generated.
Cracked daily cloud top, now marks immediate resistance at 1.3750, followed by former base at 1.3800 and broken 55SMA at 1.3844.
Thick daily Ichimoku cloud, spanned between 1.3750 and 1.3423, offers significant support and the pair may show stronger hesitation to break below the cloud.

Res: 1.3750; 1.3800; 1.3844; 1.3906
Sup: 1.3650; 1.3600; 1.3539; 1.3423







AUDUSD

Aussie broke above 0.72 barrier, Fibonacci 76.4% of 0.7325/0.6825, extending yesterday’s strong bullish acceleration that eventually broke above pivotal 0.7140 barrier, former consolidation top, reinforced by daily 100SMA.
The pair attempts above thin daily Ichimoku cloud, spanned between 0.7199 and 0.7219, which doesn’t mark significant resistance.
Daily MA’s turned into full bullish setup and underpin the pair for further extension towards strong barriers at 0.7325/30, 31 Dec high / 200SMA and key resistance at 0.7383, 04 Dec consolidation top, regain of which would signal stronger correction.
Former pivot at 0.7140 now marks initial support, which is expected to protect the downside.

Res: 0.7250; 0.7300; 0.7330; 0.7383
Sup: 0.7140; 0.7100; 0.7070; 0.7004