The pair remains in a quiet mode during the European session, moving within 25-pip range. Near-term tone is slightly aligned towards the downside, as hourly indicators continue to point lower, with break below initial support zone at 1.2560/50, day’s lows / 55 day EMA / Fib 61.8%, required to accelerate losses towards 1.2500. On the upside, break above range top at 1.2585 and more important 1.2600, to turn near-term focus higher. Not much action expected as US is closed for Labor Day.
Res: 1.2585, 1.2600, 1.2636, 1.2650
Sup: 1.2559, 1.2547, 1.2520, 1.2508
Today’s bounce, backed by better than expected fundamentals, turned the near-term tone slightly into positive territory, but failed to clear psychological barrier at 1.5900. With the current configuration, more focus is seen towards the upside, with break above 1.5900/11 and daily close above, required to confirm resumption of one-month uptrend. Otherwise, further consolidation would be likely, with important supports at 1.5806, trendline and 1.5750 breakpoint, expected to protect the downside and prevent formation of double-top pattern.
Res: 1.5897, 1.5911, 1.5931, 1.5950
Sup: 1.5870, 1.5850, 1.5833, 1.5818
Near-term corrective action prevented the pair sliding towards important 78.00 support, however, gains remain limited under initial barrier at 78.40. Failure to break higher and regain minimum 78.80, range top, would keep the downside under pressure, as near-term studies remain in the negative territory. Loss of 78.00 base will be bearish and bring key short-term support at 77.65 in focus.
Res: 78.39, 78.44, 78.60, 78.83
Sup: 78.27, 78.15, 78.00, 77.90
As the price breaks below cloud and daily Ichimoku studies keep the downside in focus, near-term bounce off last Friday’s low at 0.9500 is seen as corrective. Initial barrier and previous lows at 0.9550 zone, reinforced by 20 day EMA, keep the upside limited for now, along with weak near-term studies, not much of upside prospect is seen in the near-term. Regain of minimum 0.9600 and more important 0.9630/50 resistance zone, would provide relief, otherwise, fresh slide towards 0.9500, initial support, would be likely scenario.
Res: 0.9559, 0.9600, 0.9615, 0.9634
Sup: 0.9538, 0.9500, 0.9461, 0.9420