EURUSD establishes below 1.08 after brief consolidation; downside remains in focus

EURUSD

The Euro remains under pressure and probes again below strong 1.08 support zone, daily Ichimoku cloud base / higher base and floor of one-month consolidation range. Yesterday’s trading left another daily bearish candle, but with long shadows, signaling hesitation at pivotal 1.08 support.
Today’s fresh weakness signals renewed downside pressure, which requires close below 1.08 handle to confirm daily failure swing pattern and open way for further retracement of 1.0519/1.1058 upleg.
Daily indicators are heading south, with bearish setup of daily MA’s, supporting further weakness, which eyes net target at 1.0725, Fibonacci 61.8% retracement of 1.0519/1.1058 rally.
On the other side, daily slow Stochastic entered oversold territory and may pause near-term bears on reversal higher.
Daily 30SMA caps today’s action and offers initial resistance at 1.0830, followed by thin hourly Ichimoku cloud, spanned between 1.0872 and 1.0884, which is expected to cap.
Only return above daily 20SMA, which turned downside and currently lies at 1.0910, would sideline bears.

Res: 1.0800; 1.0830; 1.0884; 1.0910
Sup: 1.0763; 1.0725; 1.0700; 1.0635






GBPUSD

Cable maintains overall bearish tone and points towards yesterday’s fresh low at 1.4661, after completing mild correction, which was capped at 1.4723.
Yesterday’s bumpy ride lest bearish daily candle with long shadows, but bears remain in firmly play and look for break below 1.4661 handle, towards psychological 1.4600 support and for retest of key 1.4564 support, low of 2015.
Studies remain firmly bearish on all timeframes, however, oversold daily slow Stochastic, warns of possible bounce. No reversal signal being generated yet.
Initial resistances lay at 1.4723, session high, followed by hourly Ichimoku cloud, spanned between 1.4741 and 1.4768.
Falling daily 10SMA at 1.4810, which maintains downleg from 1.4931, 28 Dec high, is expected to cap rallies.

Res: 1.4723; 1.4741; 1.4768; 1.4810
Sup: 1.4661; 1.4630; 1.4600; 1.4564







USDJPY

Near-term came under pressure again, after recovery attempt from yesterday’s fresh 2 ½ month low at 118.68, stalled at 119.68.
Fresh near-term bears probe below 119 handle, for final push towards key 118 higher base.
Technicals hold firm bearish setup and favor scenario of full retracement of 118.05/123.74 upleg.
Session high at 119.68, marks initial resistance, ahead of psychological 120 barrier and falling daily 10SMA at 120.31, which is expected to cap extended rallies.
Only reversal above 120.64, 30 Dec lower top, would signal stronger rebound and sideline immediate downside risk.

Res: 119.68; 120.00; 120.31; 120.64
Sup: 118.68; 118.00; 117.50; 116.86








AUDUSD

The pair consolidates above 0.7154, yesterday’s low, posted on sharp bearish acceleration that left long red daily candle, which marks the biggest daily fall since 17 Dec. Fresh bears are establishing on daily chart and look for return the first downside pivot at 0.7095, higher low of 17 Dec. Thin daily Ichimoku cloud lies en-route, but not expected to offer any significant support.
Asian high at 0.7212, marks initial resistance, reinforced by Fibonacci 38.2% of 0.7322/0.7154 downleg and capped by falling daily 20SMA at 0.7225, where corrective rallies should be capped.
Conversely, daily close above 20SMA, would sideline immediate downside threats.

Res: 0.7212; 0.7225; 0.7258; 0.7299
Sup: 0.7154; 0.7095; 0.7014; 0.6936