AUDUSD posts fresh 6-year low after dissapointing Chinese data

EURUSD

The Euro pulls back from yesterday’s rally high at 1.1016, where descending daily 20SMA capped and consolidates under daily Ichimoku cloud base at 1.0992 that marks tough barrier for now. Negative alignment of daily technicals keeps the downside in vulnerable, with corrective rallies expected to precede fresh bear-leg of larger downmove from 1.1434, peak of 18 June. However, extended correction cannot be ruled out, as the pair shows positive weekly results on recovery after false break below 1.0819, low of 27 May. Repeated attempts above daily cloud base and eventual break above daily 20SMA, would trigger further correction towards next barriers at 1.1059, Fibonacci 61.8% of 1.1215/1.0807 downleg and 1.1108, daily Kijun-sen line that is turning lower and is expected to ideally cap extended rallies.

Res: 1.0992; 1.1016; 1.1059; 1.1108
Sup: 1.0950; 1.0922; 1.0900; 1.0868





GBPUSD

Cable reversed sharply yesterday, after repeated failure at pivotal 1.5673 barrier, 15 July high and near-term congestion top. Fresh downmove that ended yesterday’s trading in long red candle, broke below consolidation range low at 1.5527 and penetrated ascending daily cloud top, to find temporary footstep at 1.5500, mid-point of 1.5327/1.5673 rally. Near-term structure weakened and risks further downside on loss of 1.55 handle that would also confirm lower platform at 1.5670 zone. Setup of daily technicals is turning bearish and confirms negative near-term scenario. Strong resistance lies at 1.5560 zone, daily cloud top, reinforced by daily Tenkan-sen / 20SMA and should cap upside attempts to maintain fresh bears, as the pair is poised for negative weekly close.

Res: 1.5536; 1.5560; 1.5604; 1.5644
Sup: 1.5500; 1.5449; 1.5409; 1.5363






USDJPY

The pair holds in near-term directionless mode, being entrenched within 123.66 and 124.17 range. Neutral structure of near-term studies confirms indecision along with double long-legged daily Doji, seen in past two days. However, daily technicals maintain bullish tone and see fresh attempts higher on completion of current consolidation. Rising daily Tenkan-sen underpins the action at 123.69 and should be ideally containing, to prevent further easing and attack at pivotal daily cloud top at 123.20 and 14 July higher low at 122.90, loss of which to weaken the structure. On the upside, break above 124.17, current consolidation top, to open pivot at 124.46, 21 July high and signal resumption of the upleg from 120.39, 08 July low.

Res: 124.03; 124.17; 124.46; 124.72
Sup: 123.66; 123.12; 122.90; 122.43





AUDUSD

Aussie accelerated lower overnight and probed below 0.7300, psychological support, to post fresh six-year low at 0.7268. Strong pressure on negative technicals was accelerated by fundamentals, with the pair commencing fresh bear-leg after completion of near-term consolidation above previous low at 0.7324. Near-term action is targeting 0.7204, Fibonacci 76.4% of 0.6007/1.1079, 2008/2011 acceleration. Former low at 0.7324, offers initial resistance, ahead of falling daily 10SMA at 0.7381 and consolidation top at 0.7447, reinforced by descending daily 20SMA, below which extended corrective rallies should be capped.

Res: 0.7324; 0.7381; 0.7415; 0.7447
Sup: 0.7268; 0.7250; 0.7204; 0.7150