Cable hits fresh 4-month low on dovish BoE

EURUSD

The Euro returned to weakness and trades near 1.3330 base, following yesterday’s sharp rally, driven by fundamentals, which showed again lack of strength to break above near-term congestion tops and pivotal barriers. Negative near-term studies keep the downside favored, with penetration through 1.3330 base, reinforced by weekly cloud base, to trigger fresh extension of larger descend from 1.3392, towards 1.3247, Fibonacci 38.2% of 1.2042/1.3392 ascend. Overextended daily conditions, however, may delay bears for prolonged consolidative phase.

Res: 1.3372; 1.3414; 1.3431; 1.3443
Sup: 1.3347; 1.3331; 1.3300; 1.3250




GBPUSD

Cable came under increased pressure and slumped below 1.6690 higher base, on Sterling-negative data, released yesterday. Overall bears are confirmed by loss of strong support and target at 1.6690, with immediate target at 1.6657, 200SMA, being tested and psychological 1.66 support coming in focus. Oversold near-term conditions, however, are expected to interrupt bears for consolidative/corrective action, with psychological 1.67 barrier offering initial resistance, ahead of 1.6735, Fibonacci 38.2% of 1.6843/1.6668 downleg/hourly 55SMA and 1.6755, previous lows and descent’s mid-point, where rallies should be ideally capped.

Res: 1.6700; 1.6735; 1.6755; 1.6766
Sup: 1.6655; 1.6600; 1.6563; 1.6500





USDJPY

The pair remains supported and moves higher after eventually breaking above 102.45/47 lower top/Fibonacci barriers. Positive near-term studies favor further upside and eventual test of pivotal 103 resistance zone, with the notion being supported by reversal pattern, which is close to completion on a daily chart. Previous peaks and 200SMA at 102.30 zone should ideally contain corrective dips, with potential loss of 102 handle, to sideline bulls.

Res: 102.64; 102.91; 103.07; 103.42
Sup: 102.30; 102.07; 102.00; 101.69

AUDUSD

Pair’s overall structure remains negative, as bearish accelerationoff 0.9372, 06 Aug lower top, posted new low at 0.9237, on approach to strong0.92 zone base. Brief upside attempts are expected to delay bears, which are lookingfor test of  0.92 higher base and 0.9180,Fibonacci 38.2% retracement of larger 0.8658/0.9503 bull phase, with loss ofthese supports expected to accelerate bears off 0.9503 peak. Consolidativeaction off 0.9237 low has cracked psychological 0.93 barrier, also 50% retracementof 0.9372/0.9237, which may delay bears, however, only break above 0.9372 lowertop would signal near-term base and more significant corrective action.

Res: 0.9320; 0.9372; 0.9400; 0.9423
Sup: 0.9286; 0.9237; 0.9200; 0.9180