The near-term upside attempts remain capped by descending 4h chart Ichimoku cloud base, as gains on better than expected EU indicators were quickly erased and pair holding at 1.2900 handle. Narrowed range and near-technicals in sideways mode, do no not see much of the action ahead, as markets await tomorrow’s ECB decision and US NFP data, due on Friday. Immediate support at 1.2875 higher base, also bull trendline, holds for now, while today’s lower top at 1.2938, equivalent to 01 Oct high, offers initial barrier and lower ceiling of the range, with break of either side to define near-term direction. Strong supports and breakpoints lie at 1.2820/00, while key barriers are 1.2975 and 1.3000.
Res: 1.2900, 1.2938, 1.2966, 1.2970
Sup: 1.2886, 1.2875, 1.2865, 1.2820
Cable’s near-term outlook remains negative, as the price breaks below trendline support and base at 1.6125/00. Initial dip was contained at 1.6083 and losses interrupted by brief bounce above 1.6100, ahead of renewed weakness. As indicators on hourly and 4h charts hold in the negative territory and price below moving averages, downside remains favored. Immediate target lies at 1.6074, 13 Sep low, below which to open 1.6035, 07 Sep high / 50% retracement of 1.5769/1.6308 and Figure support at 1.6000. Initial barriers lie at 1.6100/25, while only reclaim of previous range top and yesterday’s high at 1.6175/86, would shift near-term focus upside.
Res: 1.6100, 1.6125, 1.6141, 1.6175
Sup: 1.6083, 1.6074, 1.6035, 1.6000
The dollar jumps higher vs yen, breaking above today’s high at 78.35 barrier, to approach next significant resistance at 78.50. With near-term studies in the positive zone, today’s break and close above 78.50, is seen as a trigger for extension towards key barriers at 79.00 and 79.21/30. However, overbought hourly conditions suggest corrective easing may preced fresh rally. Previous high at 78.29 offers initial support, ahead of 78.10, today’s low / 55 day EMA and 78.00, loss of which would delay bulls.
Res: 78.53, 78.78, 79.00, 79.21
Sup: 78.29, 78.10, 78.00, 77.78
Near-term price action gets congested under strong 0.9400 barrier, round figure and 200 day MA, with choppy trading entrenched within 0.9350 and 0.9390 range. As the main bull-trendline off 0.9237 low, has already been dented, today’s failure to close above 0.9400, would be a signal for further consolidation, with near-term range floor at 0.9330, required to hold, otherwise, bears would take control. Conversely, lift above initial 0.9400 barrier, is seen as spark for fresh rally and possible test of 0.9436, 01 Oct fresh 3-week high.
Res: 0.9390, 0.9400, 0.9416, 0.9436
Sup: 0.9370, 0.9353, 0.9331, 0.9326