Cable eyes Fibo 1.57 barrier for extension of rally on yesterday's hawkish BOE's chief

EURUSD

The pair ended yesterday’s trading in long-legged Doji, after upside attempt from day’s low at 1.0960, peaked at 1.1083, but gains were short-lived. Fresh weakness returned to 1.10 zone, where daily Ichimoku cloud base support was cracked again. Despite yesterday’s indecision and Asian trading being shaped in tight Doji, as well as cloud base holding the downside, Euro remains under pressure. Daily studies are bearishly aligned, with MA’s and Bollinger bands, edging lower and daily indicators holding in the negative territory. Final break below cloud base at 1.0992 and loss of yesterday’s low at 1.0960, is needed to open Fibonacci 61.8% support at 1.0880 and look for full retracement of 1.0818/1.1434 upleg, on bearish acceleration. Daily Tenkan-sen at 1.1065, offers initial resistance, ahead of yesterday’s high at 1.1083. However, pivotal barriers lay at 1.1120/36. Daily cloud top / 20SMA.Near-term price action is entrenched in narrow range, awaiting Greece parliament vote today.

Res: 1.1052; 1.1065; 1.1120; 1.1136
Sup: 1.0986; 1.0952; 1.0915; 1.0880





GBPUSD

Cable remains supported and extends yesterday’s strong rally that peaked at 1.5637, where daily 20SMA capped. Today’s fresh gains above 20SMA, look for the next pivotal barrier at 1.5698, Fibonacci 61.8% of 1.5928/1.5327 downleg, break of which to expose 1.58 zone lower platform. Daily indicators are attempting above their midlines, with setup of daily SMA’s, turning into bullish mode and break above 1.5698, seen as a trigger for fresh acceleration. On the other side, near-term studies are approaching overbought territory and warn of consolidation, before fresh push higher. Daily 10SMA offers support at 1.5527, with extended dips expected to be contained above here.

Res: 1.5698; 1.5748; 1.5800; 1.5850
Sup: 1.5637; 1.5587; 1.5554; 1.5527





USDJPY

The pair trades in near-term consolidative phase under fresh peak at 123.70, posted after strong three-day rally from 120.39 low. Yesterday’s long-legged Doji candle, signals indecision, after the pair met initial target at 123.70, suggesting extended consolidation, ahead of fresh action. Daily cloud’s top at 123.51, caps today’s action, with daily indicators at the midlines and moving averages in bullish setup. This keeps the upside favored, with fresh leg higher seen on completion of consolidative phase. Next target lies at 124.40 zone, former consolidation tops. On the downside, daily 20SMA that contained yesterday’s attempts lower, lies at 122.91 and offers solid support, reinforced by Fibonacci 23.6% of 120.39/123.700 rally. Ideally, stronger dips off current narrow range, should be contained here, to keep bullish sentiment intact. Otherwise, break lower, would suggest stronger correction and expose supports at 122.44/02, Fibonacci 38.2% and 50% retracement.

Res: 123.70; 124.00; 124.36; 124.42
Sup: 123.25; 122.91; 122.44; 122.05





AUDUSD

Aussie regained traction, following yesterday’s rally that marked positive daily close after repeated Dojis and approaches the upper boundary of near-term consolidation at 0.7495. Hourly studies turned positive, favoring fresh attempts higher. The notion is supported by daily Stochastic / RSI that reverse from oversold territory and suggest further correction. Break above 0.7495 barrier, is needed to confirm scenario and expose next resistance at 0.7552, Fibonacci 38.2% retracement of 0.7847/0.7370 downleg. However, overall bearish structure sees limited upside action, which should be ideally capped under 0.76 zone, former base, reinforced by falling daily 20SMA. Conversely, repeated failure at near-term range top, would suggest extended consolidation, ahead of fresh attempts lower.

Res: 0.7487; 0.7495; 0.7531; 0.7552
Sup: 0.7435; 0.7411; 0.7370; 0.7350