Euro returns below daily cloud; n/t outlook negative

EURUSD

The Euro accelerated lower on dollar-supportive Fed, after leaving lower top at 1.1082 and posting fresh weekly lows on today’s fresh weakness. Post-Fed bearish acceleration broke and closed below strong 1.10 support daily Ichimoku cloud base, turning near-term sentiment into bearish mode. Fresh weakness retraced so far over 50% of 1.0807/1.1128 recovery leg and is looking for next support at 1.0924, 24 July higher low and near Fibonacci 61.8% retracement, with break here to confirm an end of recovery phase from 1.0807 and daily chart lower top at 1.1128. Near-term technicals turned negative, with bearish alignment of daily studies, keeping the downside favored. Falling daily 20SMA that capped overnight’s action and daily cloud base, now mark initial resistances at 1.0989/97 zone, a head of bear-trendline off 1.1434, currently at 1.1030 and daily Kijun-sen line at 1.1042, where extended corrective attempts should be capped.

Res: 1.0989; 1.0997; 1.1030; 1.1042
Sup: 1.0924; 1.0900; 1.0868; 1.0807





GBPUSD

Cable returned into daily cloud after yesterday’s probe above strong 1.5670 resistance zone was short-lived and failed to break higher. Fresh weakness probes below 1.56 handle , also Fibonacci 38.2% of 1.5464/1.5688 upleg, below which price currently consolidates. Setup of daily MA’s and Ichimoku lines remains bullish, however, daily indicators are in neutral mode and 20d Bollingers are contracting that suggests further consolidation, before fresh attempts higher. To maintain such scenario, daily 10SMA at 1.5569, is required to contain and guard pivotal daily 20SMA at 1.5547, loss of which to bring near-term bears back fully in play.

Res: 1.5622; 1.5644; 1.5670; 1.5688
Sup: 1.5587; 1.5569; 1.5547; 1.5526





USDJPY

The pair continues to trend higher, supported by Fed’s comments and left another long daily bullish candle yesterday. Today’s resumption of the upleg from strong 123 support, where higher low is forming, broke above 124 barrier and looking for retest of pivotal 124.47, 21 July top. Final break through strong resistance zone, between 124.36 and 124.72, former tops of broader congestion, is needed to eventually open way towards key top at 125.84, posted on 05 June. Setup of daily technicals remains firmly bullish and supports further upside. Daily 10SMA that contained overnight’s action, marks initial support at 123.86, ahead of ascending daily 20SMA and daily cloud top at 123.30, which guards pivotal 123.00 support.

Res: 124.23; 124.47; 124.72; 125.00
Sup: 123.86; 123.52; 123.30; 123.00






AUDUSD

Yesterday’s close in red and price action capped by initial barrier, daily 10SMA, signals limited upside action, of near-term consolidative phase above fresh multi-year low at 0.7255. Bears continue to dominate on all timeframes, keeping focus at the downside, with break of 0.7255 footstep, expected to open way towards short-term target at 0.7204, Fibonacci 76.4% of multi-year 0.6007/1.1079 ascend and possibly expose psychological 0.7000 support, on break lower. Falling daily 10SMA offers immediate resistance at 0.7334, ahead of daily Tenkan-sen at 0.7351 and descending daily 20SMA at 0.7387. Only break of the latter would signal stronger correction and sideline immediate bears.

Res: 0.7334; 0.7351; 0.7387; 0.7415
Sup: 0.7280; 0.7255; 0.7204; 0.7150