Cable - daily cloud top continues to limit upside attempts

EURUSD

The Euro continues to trade between daily 55SMA, where recent rallies were capped at 1.1128 and strong lower boundary at 1.10 zone, where daily 20SMA; Fibonacci 38.2% of 1.0807/1.1128 upleg and daily cloud base offer strong support. Pullback from 27 July’s fresh recovery peak at 1.1128 was so far contained at 1.1020, however, weakening near-term studies see risk of fresh attack at strong 1.10 support zone. Fresh weakness from overnight’s high at 1.1082, is pointing at initial support a t 1.1033, bull-trendline, drawn off 1.0807 low, ahead of 1.1020 footstep, break of which to signal formation of hourly failure swing and expose pivotal 1.10 support zone. Overall picture remains negatively aligned and keeps the downside focused, ahead of today’s end of two-day Fed’s meeting, with more clear picture about possible rate hike in September expected. Below 1.10 zone, immediate support lies at 1.0980, daily Tenkan-sen and 1.0952, daily 10SMA, loss of which to confirm near-term bears back in play. Session high at 1.1082 offers initial resistance, ahead of 1.1115/28, daily 55 SMA and Monday’s recovery peak, above which to signal recovery resumption.

Res: 1.1082; 1.1115; 1.1128; 1.1195
Sup: 1.1033; 1.1020; 1.1000; 1.0980





GBPUSD

Cable attempts to break above daily cloud top, which was cracked on yesterday’s rally to 1.5626, daily high. Repeated strong daily close signals fresh strength and shifts focus higher again. However, overnight’s price action was capped by rising daily cloud top, currently at 1.5611. Near-term studies are bullish but neutral tone, prevailing on daily studies and contracting daily 20d Bollingers, keep alive scenario of prolonged consolidation phase that is currently entrenched between 1.5670 lower platform and 1.5464, 24 July low. Near-term price action holds around 1.56 handle, keeping intact initial support at 1.5670, daily 10SMA, also daily Tenkan-sen/Kijun-sen bull cross and daily 20SMA at 1.5548, which is expected to contain and keep focus at range’s upper boundary.

Res: 1.5611; 1.5628; 1.5670; 1.5698
Sup: 1.5570; 1.5548; 1.5526; 1.5500






USDJPY

The pair averted immediate downside risk, seen on attack at strong 123 support zone, daily cloud top, Fibonacci 38.2% retracement of 120.39/124.47 upleg, as yesterday’s bounce marked positive daily close. On the other side, rally failed to break initial barriers at 123.72/82, daily Tenkan-sen / Monday’s high / daily 10SMA, break of which is needed to confirm recovery off 123 support. While the price action remains below these barriers, expect further consolidation. Daily structure is positive and favors eventual break above 123.82 barrier, to look for 124.47 pivot and resume larger recovery leg, off 120.39, 08 July low. However, weak near-term technicals require caution and see risk of renewed attacks at 123 support, as long as 123.82 barrier caps.

Res: 123.82; 124.17; 124.47; 124.72
Sup: 123.31; 123.00; 122.90; 122.43






AUDUSD

Aussie closed in long bullish candle yesterday, leaving near-term base at 0.7255, fresh 6-year-low. However, bounce did not make significant changes so far, as rally is for now capped by falling daily 10SMA, currently at 0.7348 that marks initial resistance. Bullish tone on hourly studies is offset by firm bears on larger timeframes that makes recovery attempts limited. Potential break above 10SMA to expose next barriers at 0.7394/0.7406, 4-hour Ichimoku cloud base / falling daily 20SMA, which are expected to ideally cap rallies, before bears reassert for fresh push lower and final attack at 0.7204 target. Only sustained break above 0.74 barrier would signal stronger recovery.

Res: 0.7348; 0.7394; 0.7406; 0.7447
Sup: 0.7308; 0.7291; 0.7255; 0.7204