EURUSD
The Euro consolidates above fresh low at 1.0891, after yesterday’s fresh weakness broke below targets at 1.0930/00. The third consecutive daily close in red gives strong bearish signal and opens strong support zone at 1.0818/08, former lows of 27 May and 20 July that marks the floor of multi-month congestion, capped at 1.1465/34. The pair is also poised for negative monthly close that supports bearish scenario. Weekly candle is shaped in Doji style, with long upper shadow, signaling strong selling interest, however, hesitation on approach to strong support area cannot be ruled out, with pre-weekend profit-taking, expected to trigger further corrective acceleration. Initial resistance lies at 1.0982/88, yesterday’s high / Fibonacci 38.2% of 1.1128/1.0891 downleg, reinforced by falling daily 20SMA. Break and close above here to pause near-term bears and signal stronger recovery towards next layer of strong resistances at 1.1020/38, 28 July former low / Fibonacci 61.8% retracement. Extended rallies should be capped here, to keep larger bears intact.
Res: 1.0988; 1.1020; 1.1038; 1.1078
Sup: 1.0927; 1.0891; 1.0868; 1.0807
GBPUSD
Cable remains in daily cloud, despite yesterday’s attempts above cloud top, as the day ended in long-legged Doji, after making 80-pips daily amplitude. This signals further consolidation under pivotal 1.5670 resistance zone, after unsuccessful attempt higher on 29 July. Contracting daily 20d Bollinger bands and indicators in neutral mode, support the notion. On the other side, setup of daily moving averages remains bullish and suggests fresh attempts higher, after completion of consolidative phase. Daily 10SMA offers initial support at 1.5567, ahead of daily 20SMA at 1.5547, which is expected to contain and keep the upside in focus. Daily Ichimoku cloud top at 1.5627, marks initial resistance, ahead of key 1.5670/88 highs at 1.5698, Fibonacci 61.8% of 1.5928/1.5327 downleg.
Res: 1.5622; 1.5644; 1.5670; 1.5688
Sup: 1.5560; 1.5547; 1.5526; 1.5500
USDJPY
The pair extended near-term uptrend and spiked at 124.56, posting marginally higher high, but failed to sustain break higher. Near-term bulls are delayed by corrective pullback that so far found support at 123.87, where daily 10SMA contained. Overall structure remains bullish and keeps the upside favored, with final push above strong 124.36/72 resistance zone, needed to confirm resumption of recovery from 120.39, low of 08 July and expose psychological 125 barrier and key 125.84 top, in extension. Daily 20SMA underpins at 123.36, along with top of thick daily cloud.
Res: 124.47; 124.56; 124.72; 125.00
Sup: 123.87; 123.58; 123.36; 123.00
AUDUSD
The pair continues to trade in narrow consolidation above fresh low at 0.7253, with yesterday’s long-legged Doji candle, confirming near-term indecision. However, downside remains vulnerable, as near-term technicals are weakening, following recovery rejection at 0.7349 and larger picture remains firmly bearish. Break below near-term base at 0.7255 to open next target at 0.7204, Fibonacci 76.4% and expose psychological 0.7000 support. Descending daily 10SMA caps at 0.7323, guarding falling daily 20SMA, currently at 0.7375 that marks pivotal barrier. Bearish scenario is supported by long monthly red candle.
Res: 0.7308; 0.7323; 0.7351; 0.7375
Sup: 0.7255; 0.7204; 0.7150; 0.7100
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