The Eur/Usd moved lower during the European session, hitting session low at 1.2836, driven by negative technicals and increasing fears of further deepening of Eurozone’s crisis, with Spain now being in focus. The price touched important support, 200 day MA, en-route towards 1.2800, broken bear-trendline off 1.3485 lie. Potential break here would be a signal for further correction, as a part of reversal from 1.3170, 14/17 Sep double-top, with next significant support at 1.2740, mid-June highs / regression channel support, expected to come in focus. Negative near-term outlook is also confirmed by bearish 4h chart Ichimoku studies, as the price breaks below the cloud base at 1.2900, which now acts as initial resistance, along with Tenkan-sen line.
Res: 1.2886, 1.2900, 1.2911, 1.2952
Sup: 1.2835, 1.2826, 1.2800, 1.2740
The pair finds near-term base at 1.6150, despite quite negative technicals, as three attempts lower were contained at this level, with price action congested between 1.6150 and 1.6200, during European and early US session hours. Failure to clear initial barrier at 1.6200, keeps the downside under pressure, with hourly 20 day EMA capping for now. Any stronger move higher, requires break above 1.6265, to avert immediate downside risk, otherwise, break below 1.6150 would signal completion of Head and Shoulders pattern and open way for stronger correction of 7-week ascend from 02 Aug low at 1.5489 and expose 1.6100/1.6065, Fibonacci / trendline supports.
Res: 1.6180, 1.6200, 1.6242, 1.6265
Sup: 1.6148, 1.6130, 1.6100, 1.6074
The pair’s bounce of fresh session low at 77.58, provided temporary relief, despite gains being capped at initial 77.90 barrier. Slight improvement on hourly chart studies, keeps hopes of possible stronger corrective action, boosted by comments from Japanese Central Bank, however, overall negative sentiment does not leave much room for this, unless clear break above 78.00 occurs. On the downside, loss of 77.58 support, will focus our near-term targets at 77.12/00.
Res: 77.90, 78.00, 78.27, 78.36
Sup: 77.58, 77.45, 77.12, 77.00
The pair remains supported, as fresh extension higher, cracks important 0.9400/16 barrier, 200 day MA / 50% retracement, reaching fresh high at 0.9414 so far. Near-term studies remain in the positive territory, however, extended hourly studies would signal possible hesitation at this strong resistance. Today’s close above 200 day MA is seen as supportive factor for fresh extension of near-term corrective bounce from 0.9237, 14 Sep low, as break higher would open Fib 61.8% at 0.9447, possibly psychological, 0.9500 barrier, on a break. Any dips should ideally be contained at 0.9360/50 zone, to keep near-term bulls in play.
Res: 0.9416, 0.9432, 0.9447, 0.9465
Sup: 0.9390, 0.9366, 0.9355, 0.9340