Slobodan Drvenica
Windsor Brokers
EURUSD
The Euro remains under strong pressure and heads towards yesterday’s fresh low at 1.0550, posted on a bumpy ride from 1.0635 to 1.0550 and back to 1.0625, where upside attempts were capped. The single currency is awaiting today’s ECB’s meeting, with expectations of rate cut and extension of QE, being on the table.
Technicals remain firmly bearish and favor further downside action, with initial targets at 1.0550, yesterday’s low and 1.0519, Apr low, guarding key support at 1.0461, low of 2015.
On the upside, hourly Ichimoku cloud base marks initial resistance at 1.0596, followed by falling daily 10SMA and 4-hour cloud base at 1.0614 and strong resistance zone between 1.0625/35, highs of past two days.
Only break here would sideline immediate downside threats and expose next pivot at 1.0667, falling daily 20SMA.
Res: 1.0596; 1.0614; 1.0635; 1.0667
Sup: 1.0550; 1.0519; 1.0500; 1.0461
GBPUSD
Cable establishes below psychological 1.50 handle, which was finally broken yesterday. Sharp bearish acceleration also cracked strong support at 1.4900, weekly bear-channel support, left long red daily candle yesterday. This gives strong bearish signal for further retracement of larger 1.4563/1.5928, Apr-June corrective rally, as yesterday’s low at 1.4890, marks 76.4% Fibonacci retracement.
Extended daily studies suggest consolidation ahead of fresh weakness, but no firm signals being generated yet.
Psychological 1.50 handle now acts as initial resistance, ahead of former low at 1.5025 and 1.5066, falling daily 10SMA / Fibonacci 38.2% of 1.5334/1.4890 downleg, which is expected to ideally cap corrective rallies.
Res: 1.5000; 1.5025; 1.5066; 1.5080
Sup: 1.4918; 1.4892; 1.4860; 1.4800
USDJPY
The pair heads towards yesterday’s fresh recovery high at 123.65, after bulls were interrupted by 123.65/08 pullback. Reversal above psychological 123 support, kept overall bulls intact for final attack at 123.74 peak, after yesterday’s rally stalled ticks ahead of barrier.
Firm break above 123.77 to expose 125.84, peak of 2015, posted in June.
Ascending daily 20SMA, currently at 122.96, continues to underpin the action.
Res: 123.65; 123.74; 124.50; 125.00
Sup: 123.36; 123.08; 122.96; 122.62
AUDUSD
Aussie remains in near-term consolidation under yesterday’s marginally higher high at 0.7340, ahead of final attack at key 0.7380 barrier, high of 12 Oct.
Consolidation is entrenched within narrow 0.7282/0.7340 range, with firm bullish setup of daily studies, keeping the upside in focus.
However, daily slow Stochastic is entering overbought territory and could signal hesitation on approach to key 0.7380 barrier.
Consolidation floor at 0.7282, marks initial support, followed by rising daily 10SMA at 0.7251, with extended dips, expected to find footstep at 0.7220, yesterday’s low, reinforced by 4-hour Ichimoku cloud top.
Res: 0.7340; 0.7361; 0.7380; 0.7435
Sup: 0.7308; 0.7282; 0.7251; 0.7220
The Euro remains under strong pressure and heads towards yesterday’s fresh low at 1.0550, posted on a bumpy ride from 1.0635 to 1.0550 and back to 1.0625, where upside attempts were capped. The single currency is awaiting today’s ECB’s meeting, with expectations of rate cut and extension of QE, being on the table.
Technicals remain firmly bearish and favor further downside action, with initial targets at 1.0550, yesterday’s low and 1.0519, Apr low, guarding key support at 1.0461, low of 2015.
On the upside, hourly Ichimoku cloud base marks initial resistance at 1.0596, followed by falling daily 10SMA and 4-hour cloud base at 1.0614 and strong resistance zone between 1.0625/35, highs of past two days.
Only break here would sideline immediate downside threats and expose next pivot at 1.0667, falling daily 20SMA.
Res: 1.0596; 1.0614; 1.0635; 1.0667
Sup: 1.0550; 1.0519; 1.0500; 1.0461
GBPUSD
Cable establishes below psychological 1.50 handle, which was finally broken yesterday. Sharp bearish acceleration also cracked strong support at 1.4900, weekly bear-channel support, left long red daily candle yesterday. This gives strong bearish signal for further retracement of larger 1.4563/1.5928, Apr-June corrective rally, as yesterday’s low at 1.4890, marks 76.4% Fibonacci retracement.
Extended daily studies suggest consolidation ahead of fresh weakness, but no firm signals being generated yet.
Psychological 1.50 handle now acts as initial resistance, ahead of former low at 1.5025 and 1.5066, falling daily 10SMA / Fibonacci 38.2% of 1.5334/1.4890 downleg, which is expected to ideally cap corrective rallies.
Res: 1.5000; 1.5025; 1.5066; 1.5080
Sup: 1.4918; 1.4892; 1.4860; 1.4800
USDJPY
The pair heads towards yesterday’s fresh recovery high at 123.65, after bulls were interrupted by 123.65/08 pullback. Reversal above psychological 123 support, kept overall bulls intact for final attack at 123.74 peak, after yesterday’s rally stalled ticks ahead of barrier.
Firm break above 123.77 to expose 125.84, peak of 2015, posted in June.
Ascending daily 20SMA, currently at 122.96, continues to underpin the action.
Res: 123.65; 123.74; 124.50; 125.00
Sup: 123.36; 123.08; 122.96; 122.62
AUDUSD
Aussie remains in near-term consolidation under yesterday’s marginally higher high at 0.7340, ahead of final attack at key 0.7380 barrier, high of 12 Oct.
Consolidation is entrenched within narrow 0.7282/0.7340 range, with firm bullish setup of daily studies, keeping the upside in focus.
However, daily slow Stochastic is entering overbought territory and could signal hesitation on approach to key 0.7380 barrier.
Consolidation floor at 0.7282, marks initial support, followed by rising daily 10SMA at 0.7251, with extended dips, expected to find footstep at 0.7220, yesterday’s low, reinforced by 4-hour Ichimoku cloud top.
Res: 0.7340; 0.7361; 0.7380; 0.7435
Sup: 0.7308; 0.7282; 0.7251; 0.7220
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
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