The Euro slipped below 1.3100 handle, on a corrective pullback from fresh daily high at 1.3125 and just ahead of initial target 1.3138. The pullback has been signaled by RSI / MACD divergence and overbought hourly conditions. Initial support zone at 1.3060/70, also 20 day EMA, has been tested so far, with loss of momentum on hourly chart and descending 4h indicators, suggesting that further correction cannot be ruled out. Next support lies at 1.3050/40 area, ahead of more significant 1.3000 level, 50% of 1.2879/1.3125, loss of which would be a signal for stronger correction of larger 1.2660/1.3115 ascend. However, early downside rejection and regain of 1.3100 barrier, would shift focus back to the upside targets.
Res: 1.3100, 1.3125, 1.3138, 1.3170
Sup: 1.3059, 1.3046, 1.3020, 1.3000
Cable’s near-term action remains congested at 1.6100 zone, lacking momentum for retest of 1.6129, yesterday’s high, but losses so far being contained at range floor and 20 day EMA at 1.6085. This is still seen as consolidation of the recent rally from 1.5826, with gains being limited by at 61.8% of 1.6308/1.5826 descend. Indicators on 4h chart are losing traction and starting to point lower that keeps the downside at risk. Loss of 1.6085 base and 1.6075, Fib 38.2% of 1.5987/1.6129 upleg, would be a signal of further correction and test of strong 1.6050 support, previous congestion tops, daily Ichimoku cloud top and near 50% retracement, with daily close below 1.6100, required to confirm. Conversely, break and close above 1.6100 handle, would keep upside favored.
Res: 1.6100, 1.6119, 1.6129, 1.6174
Sup: 1.6085, 1.6075, 1.6060, 1.6041
The pair returns to the range after bouncing from 81.70 base, with 82.00 holding dips for now and keeping immediate target at 82.33, today’s high in focus. Hourly structure holds positive tone that supports the notion, however, still fragile situation on 4h chart requires caution and keeps the downside vulnerable. Lift above 82.33 is needed to improve the structure and re-focus recent highs at 82.74/83, while loss of 82.00 handle would increase risk of retesting range floor and possible stronger correction that would open next supports at 82.39 and 82.00, Fib 38.2% / 50% retracement of 79.06/82.83 rally.
Res: 82.33, 82.50, 82.60, 82.74
Sup: 82.00, 81.68, 81.58, 81.39
Repeated recovery attempt off levels close to 0.9239 low, has again been capped at 0.9300, where 55 day EMA / Fib 61.8% of 0.9339/0.9239 downleg and daily Ichimoku cloud base have built strong barrier. Hourly studies regained some strength, however, situation on 4h chart required break above 0.9300 and regain 0.9340, 28 Nov high / Fib 38.2% of 0.9511/0.9239 downleg, to confirm recovery and avert immediate downside risk. Otherwise, today’s close below 0.9300 would confirm lack of strength for stronger corrective action and keep near-term focus at key 0.9213 support.
Res: 0.9297, 0.9300, 0.9315, 0.9339
Sup: 0.9265, 0.9248, 0.9239, 0.9213