Slobodan Drvenica
Windsor Brokers
EURUSD
Near-term technicals remain firm and favor final attack at key 1.1374 barrier (high of 11 Feb). The pair hit fresh high at 1.1341 yesterday, on extension of two-day rally from 1.1056 (16 Mar trough) and also being on track for the third consecutive bullish weekly close. This gives bullish signals for further recovery, on break above 1.1374 pivot that could extend towards 1.1495 (15 Oct 2015 high).
Meantime, correction is expected to precede fresh bulls, with 1.12 zone (hourly higher base / 50% of 1.1056/1.1341 upleg), expected to contain extended dips.
The pair cracked initial support at 1.1274 (Fibo 23.6% of 1.1056/1.1341), followed by 1.1232 (Fibo 38.2%).
Res: 1.1341; 1.1374; 1.1400; 1.1495
Sup: 1.1254; 1.1232; 1.1200; 1.1134
GBPUSD
Cable reached 1.45 barrier on yesterday’s strong rally that marks strongest daily gains in the recent months. Rallies broke and closed above former top at 1.4434 and penetrated into thick daily Ichimoku cloud, which marks significant barrier.
Near-term price action holds in the cloud, base of which marks initial support at 1.4408. However, extended correction off 1.45 peak could be expected, with 1.4330 (Fibo 38.2% of 1.4051/1.4500 upleg), seen as ideal reversal point, guarding rising daily 10SMA support at 1.4292.
Cable’s weekly candle with very long tail, signals that strong buying interest persists and continuation of strong gains in past two weeks, is seen as favored short-term scenario.
Res: 1.4434; 1.4501; 1.4575; 1.4665
Sup: 1.4408; 1.4390; 1.4330; 1.4292
USDCAD
The pair broke below psychological 1.30 support, on yesterday’s second consecutive daily bearish action that post fresh low at 1.2943, also on track for the ninth consecutive bearish weekly close. Weaker dollar pushed oil prices higher, giving boost to Loonie for final attack at short-term targets at 1.2870 (weekly cloud top) and 1.2829 (15 Oct 2015 trough).
Corrective attempts on oversold daily conditions, should be capped under falling 10 SMA at 1.3222.
Res: 1.3090; 1.3130; 1.3166; 1.3222
Sup : 1.2943; 1.2900; 1.2870; 1.2829
AUDUSD
Aussie remains well supported and heads towards next target at 0.7711 (Fibo 138.2% expansion of extended wave C), on which the pair rides. Strong bullish structure favors further upside, with corrective actions expected on overbought daily studies. Rising daily 10SMA at 0.7517 is expected to ideally contain dips, before bulls re-assert for fresh action higher. The notion is supported by the third consecutive weekly bullish close, for which the pair is on track.
Res: 0.7636; 0.7678; 0.7711; 0.7810
Sup: 0.7610; 0.7577; 0.7531; 0.7517
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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