AUDUSD returns to key m/t support at 0.6906, signalling an end of multi-month consolidation

EURUSD

The Euro regained traction and returned above daily 20SMA / bear-channel resistance at 1.0890 zone, after pullback from week’s high at 1.0867, found support at 1.08 zone, where higher base has formed.
Near-term studies turned into bullish mode and favor attack at 1.0940/67 pivots. However, daily technicals show mixed setup and sustain break above 1.0940/67, tops of near-term congestion, is needed to confirm bullish resumption towards key barriers at 1.1006/42, daily Ichimoku cloud top / 200 SMA.
Broken daily 20SMA offers immediate support at 1.0890, ahead of 1.0856 pivot, day’s low / 10SMA.

Res: 1.0940; 1.0967; 1.0990; 1.1006
Sup: 1.0890; 1.0856; 1.0828; 1.0800






GBPUSD

Cable remains in narrow consolidation above fresh 5 ½ year low at 1.4350, ahead of short-term target at 1.4331, Fibonacci 138.2% expansion of extended wave C from 1.4943, 24 Dec 2015 lower top.
Limited upside action was seen so far, as recovery peaked at 1.4473 yesterday, followed by repeated daily close in red. Firm bearish setup of daily chart studies favors fresh weakness, with possible recovery extension above 1.4473 and psychological 1.45 barrier, expected to be capped by falling daily 10SMA, currently at 1.4567.
Former target and lows of 08/11 Jan at 1.4500, offer initial barrier, followed by 1.4576, Fibonacci 38.2% of 1.4943/1.4350 downleg and falling daily 10SMA at 1.4613, below which, extended corrective attempts should be capped.
On the downside, break through 1.4350/31 pivots, is expected to open way towards next key support and target at 1.4230, trough of Apr 2010.


Res: 1.4473; 1.4500; 1.4567; 1.4601
Sup: 1.4380; 1.4350; 1.4331; 1.4230








USDJPY

The pair remains congested under pivotal 118 barrier, after yesterday’s break higher stalled at 118.36, failing to sustain gains and closing well below 118 level.
Daily candle with long upper shadow was left yesterday, signaling strong selling interest, which so far limits potential stronger recovery attempts.
Today’s action is entrenched within 90-pips range so far and capped by falling daily 10SMA at 118.31, as near-term studies are weak and setup of daily technicals remains firmly bearish, signaling extended consolidation before larger bears resume.
However, renewed recovery attempts cannot be ruled out, as daily slow Stochastic is heading north, after reversal from oversold territory. Extension above 118 pivot, to faces strong barriers at 118.36, reinforced by daily 10 SMA and 118.45, 4-hour Ichimoku cloud base, which are expected to cap.


Res: 118.16; 118.36; 118.45; 119.12
Sup: 117.58; 117.27; 116.67; 116.13







AUDUSD

The pair hit its short-term target at 0.6906, low of Sep 2015, on fresh bearish acceleration after consolidation above former low at 0.6925, stalled at 0.7046.
Strong bears dominate and favor final break through 0.6906 pivot, to resume multi-year descend from 1.1079, peak of 2011 and look for next target at 0.6773, June 2004 low, followed by 0.6243, Feb 2009 low and key 0.6007 support, trough of Oct 2008.
Prolonged consolidation above 0.6906 breakpoint, could be expected in the near-term, with day’s high at 0.6971, offering initial resistance, ahead of hourly cloud base at 0.6992, which should cap extended rallies.

Res: 0.6950; 0.6971; 0.6992; 0.7046
Sup: 0.6906; 0.6800; 0.6773; 0.6700