The Euro trades in extended correction of yesterday’s rally, after bulls eventually broke above 1.25 barrier, below which the price was congested for past few sessions. Yesterday’s close above 1.25 is supportive for further upside, as the price peaked at 1.2568, but stayed capped under daily Ichimoku cloud and 55SMA, keeping pivotal 1.2597 high out of reach for now. Pullback, which cracked support at 1.2468 bull-trendline, drawn off 1.2245 low / 50% of 1.2368/1.2568 upleg, reinforced by 4-hour Kijun-sen line, may undermine bulls in case of further easing and close below daily 20SMA at 1.2423.
Res: 1.2490; 1.2515; 1.2555; 1.2568
Sup: 1.2444; 1.2423; 1.2415; 1.2400
GBPUSD
Near-term bulls are back to play, following yesterday’s acceleration higher and probe above 1.5755/61 barriers and daily Kijun-sen line, above which yesterday’s close occurred. Final push towards key near-term barrier and range top at 1.5823 is expected after completion of corrective action off yesterday’s high at 1.5783 and so far contained at 1.5675, near Fibonacci 61.8% of 1.5599/1.5783 upleg. Return above 1.57 barrier, requires lift above 1.5740, 61.8% of 1.5783/1.5675 descend, to neutralize bears and re-focus the upside targets. Otherwise, extended weakness and close below daily 20SMA at 1.5688 would weaken near-term structure.
Res: 1.5740; 1.5755; 1.5783; 1.5800
Sup: 1.5675; 1.5645; 1.5625; 1.5600
USDJPY
The pair accelerated lower and reached levels near initial target at 115.43, 17 Nov low / Fibonacci 38.2% retracement of 105.18/121.83 rally. Repeated close in red confirm bearish resumption and focuses next target at 113.50, 50% retracement of 105.18/121.83 rally, reinforced by daily 55SMA. Corrective action so far holds below psychological / double Fibonacci barrier at 118, where rallies should be ideally capped. Otherwise, extended corrective action and close above daily 20SMAat 118.57, would put near-term bears on hold.
Res: 117.54; 117.75; 118.00; 118.57
Sup: 117.00; 116.24; 116.00; 115.55
AUDUSD
The pair resumed descend and posted new low at 0.8137, after ending near-term consolidation above 0.8200 base. Yesterday’s close in red confirms bearish resumption, with immediate target at 0.8122, Fibonacci 176.4% expansion of extended third wave from 0.8794 and 200% expansion at 0.8033, coming just ahead of psychological 0.8000 support and next key target. Negative technicals keep the downside focused, with bears to be interrupted by corrective rallies on oversold near-term studies. Former base at 0.8200 offers initial resistance, with extended rallies to be capped under 0.8270/80, previous range tops / Fibonacci 61.8% of 0.8373/0.8137 descend.
Res: 0.8200; 0.8228; 0.8270; 0.8300
Sup: 0.8137; 0.8122; 0.8100; 0.8033
Recommended Content
Editors’ Picks
AUD/USD could extend the recovery to 0.6500 and above
The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.
EUR/USD now refocuses on the 200-day SMA
EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.
Gold struggles around $2,325 despite broad US Dollar’s weakness
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure
Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.
US versus the Eurozone: Inflation divergence causes monetary desynchronization
Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone.