The Euro’s near-term tone weakened, as the price failed to clear psychological 1.37 barrier after brief probe above recent range top at 1.3686 and subsequent easing cracked range’s lower boundary at 1.3636. Hourly studies turned negative, with downside risk towards Fibonacci 50% and 61.8% of 1.3547/1.3698 upleg, being in play. On the other side, overall picture remains bullish, with positive 4-hour conditions being supportive for renewed attempt higher, once corrective phase is completed. Dips should be contained at / above 1.36 handle, also trendline support, to keep the scenario valid. Otherwise, risk of lower top formation at 1.3698 and return to initial support at 1.3550, 09/01 low / daily 100DMA, will remain on the table.

Res: 1.3643; 1.3657; 1.3689; 1.3700

Sup: 1.3600; 1.3583; 1.3567; 1.3552

Cable remains in near-term directionless mode, trading within 1.6510 and 1.6336 range, with the price action moving below range’s midpoint. Hourly studies are losing traction after yesterday’s rejection at 1.6463, with 4-hour technicals being in neutral mode. This sees potential for prolonged sideways trading, with break of either boundary required to define near-term direction. Positive daily studies keep the upside focused, however, loss of initial support and higher **** at 1.6340 zone, as well as psychological 1.6300, also Fibonacci 61.8% retracement of 1.6212/1.6602, would undermine the structure and risk deeper pullback.

Res: 1.6400; 1.6426; 1.6463; 1.6490

Sup: 1.6375; 1.6366; 1.6336; 1.6300

The pair regained strength on yesterday’s bounce from fresh low at 102.84, as subsequent acceleration peaked at 104.46 and retraced over 61.8% of 105.34/102.84 downleg. Corrective pullback on overbought hourly conditions should find support around 103.70, near mid-point of entire rally, to keep fresh bulls in play, however, still weak 4hour conditions require caution. Regain of 105 handle to confirm higher low formation and re-focus key barriers at 105.34/43, conversely, slide below 103.70 would risk further weakness and retest of 103.00/102.84 supports.

Res: 104.46; 104.60; 105.05; 105.34

Sup: 104.00; 103.65; 103.46; 103.22

The pair lost ground again after recovery stalled at 0.9083 and subsequent pullback lost 0.9000/0.8980 support, to extend weakness to psychological 0.8900 support. This confirms false break above near-term range and shifts near-term focus lower, as near-term technicals turned negative. Consolidation around 0.89 support is seen on oversold hourly conditions, with corrective rallies to face resistances at 0.8950/70 and 0.9000, previous support and bearish 20/55DMA’s cross, seen capping for now. Extension below 0.8900 handle would risk return to near-term **** and key support at 0.8820 zone.

Res: 0.8922; 0.8950; 0.8970; 0.9000

Sup: 0.8879; 0.8842; 0.8819; 0.8800

The Euro remains under pressure in the near-term, as yesterday’s extension of two-day pullback from 1.3698 peak retested strong support at 1.3580 zone, where trendline support and daily Ichimoku cloud top limit the downside attempts for now. Negative tone prevails on 4-hour chart, while hourly structure improves on corrective bounce above 1.36 barrier that test hourly pivot at 1.3625, Fibonacci 38.2% of 1.3698/1.3580 / 55DMA. Break here to trigger stronger recovery towards the next significant hurdle at 1.3655, previous consolidation range floor and Fibonacci 61.8% retracement. Key near-term barrier lies at 1.3700, top of near-term 1.3580/1.3700 congestion, with break above to signal resumption of recovery phase from 1.3547. However, weak overall tone, with daily indicators entering negative territory, sees the downside vulnerable, with loss of key support and pivotal point at 1.3580, seen as a trigger for further easing towards 1.3547, 09/01 low, reinforced by daily 100DMA and 1.3522/00, Fibonacci 61.8% of 1.3294/1.3892 / round figure support, in extension.

Res: 1.3625; 1.3655; 1.3700; 1.3714

Sup: 1.3600; 1.3580; 1.3547; 1.3522

Cable’s near-term focus shifts lower, as the price probes below near-term congestion low at 1.6340 zone. Extension near psychological 1.63 support, so far retraced 38.2% of larger 1.5853/1.6602 ascend at 1.6316, also Fibonacci 76.4% of 1.6212/1.6602, below which to complete daily H&S pattern and trigger further easing, as extension of pullback from 1.6602, 02/01 peak. Weak near-term studies support the notion, with lower platform at 1.6375, also Fibonacci 38.2% of 1.6463/1.6321 descend, offering initial resistance and 1.64 barrier, 61.8%, expected to cap corrective rallies.

Res: 1.6375; 1.6409; 1.6436; 1.6463

Sup: 1.6320; 1.6300; 1.6261; 1.6212

The pair remains positive and extends near-term rally off 102.84, 13/01 low, close to strong 105 resistance zone and previous congestion tops. Positive near-term technicals support attempt through 105 hurdle for final push towards key barrier and tops at 105.40/43, regain of which to complete 105.43/102.84 corrective phase. Corrective dips should be ideally contained at 104.20/00, 15/01 higher low / Fibonacci 38.2% of 102.84/104.93 / round figure support, to keep fresh bulls intact.

Res: 105.05; 105.34; 105.43; 105.58

Sup: 104.44; 104.13; 104.00; 103.65

The pair accelerated lower after full retracement of 0.8819/0.9084 corrective phase and loss of near-term **** at 0.8820 zone. Fresh bears tested psychological 0.8800 support, as resumption of larger downtrend from 1.1079, 2011 peak, looks for test of 0.8769, Aug 2010 low and 0.8576/43, Feb 2010 low / 50% retracement of multi-year 0.6007/1.1079 rally. With bears being fully in play, downtrend may be interrupted by corrective rallies on oversold near-term studies. Initial resistance lay between 0.8820 and 0.8860, previous lows, while only break above 0.89 barrier and Fibonacci 38.2% of 0.9084/0.8794 fall, would delay immediate bears for more significant corrective action.

Res: 0.8820; 0.8842; 0.8863; 0.8900

Sup: 0.8794; 0.8769; 0.8733; 0.8700

The Euro consolidates above fresh low at 1.3506, with the upside attempts being limited by hourly 55DMA /daily 100DMA / daily cloud **** at 1.3566. Weak near-term studies do not see much of the upside prospect for now, as layers of strong resistances lay above, with the next ones at 1.3580, previous **** and 38.2% retracement of 1.3698/1.3506 and 1.36 zone, 50% retracement / daily cloud top / 4-hour 55DMA, above which comes double-Fibonacci barrier at 1.3625 and lower top of 16 Jan at 1.3648. Only break here would neutralize near-term bears and turn near-term focus towards the upside. Otherwise, lower top, ideally around 1.36 handle, where broken bull-trendline off 1.2754 low reinforces barrier and fresh weakness, is seen as preferred near-term scenario. Break below 1.35 handle to resume weakness off 1.3892 top and expose 1.3435, Fibonacci 76.4% of 1.3294/1.3892 and psychological 1.3400 support.

Res: 1.3566; 1.3580; 1.3600; 1.3625

Sup: 1.3506; 1.3460; 1.3430; 1.3400

Cable trades in near-term consolidative mode, with price action entrenched within 1.6457/1.6393. The pair is so far unable to clearly break above bear-trendline off 1.6602 peak, currently at 1.6430 and last Friday’s peak at 1.6457 that keeps the downside risk in play. However, near-term technicals remain positively aligned, with hourly studies lacking momentum for now. Sustained break above 1.6457 is required to resume rally off 1.6393 and confirm bottom at 1.6393 that would open next significant barrier at 1.6515, 10 Jan lower top, for retest. Otherwise, downside risk would increase in case of violation of initial support and higher **** at 1.64 zone.

Res: 1.6457; 1.6500; 1.6515; 1.6577

Sup: 1.6422; 1.6409; 1.6393; 1.6364

The pair regained strength after finding ground at 103.90 support zone, as fresh rally approaches initial barrier at 104.93. Break here is required to complete 104.93/103.85 corrective phase and confirm higher low formation for fresh attempt towards key hurdles at 105.40 zone. Positive near-term technicals support the notion, with overbought hourly studies seeing possible hesitation on approach. Downside should be ideally protected at 104.40, hourly 20DMA / hourly Kijun-sen line, to keep freshly established bulls off 103.85 intact. Otherwise, lower top formation and return to initial 103.90 support zone, with increased downside risk, would be likely scenario.

Res: 104.78; 104.93; 105.05; 105.34

Sup: 104.56; 104.40; 104.13; 103.89

The pair remains in narrow range consolidative phase, after posting fresh low at 0.8755, with near-term tone being negatively aligned. Overall picture remains bearish and favors further downside, as acceleration through previous **** at 0.8820 and psychological 0.8800 support signals resumption of larger downtrend towards next targets at 0.8576/43, Feb 2010 low / 50% retracement of multi-year 0.6007/1.1079 rally. Corrective rallies on oversold near-term studies remain capped at range top t 0.8830 zone, previous low / consolidation top / 4-hour 20DMA that keep the upside attempts limited. Only extension above 0.8881, Fibonacci 38.2% of 0.9084/0.8755 and psychological 0.8900 barrier would provide near-term relief.

Res: 0.8836; 0.8863; 0.8881; 0.8900

Sup: 0.8775; 0.8755; 0.8733; 0.8700

The Euro remains in near-term consolidative mode above fresh low at 1.3506, with probe above initial 1.3560 barrier, being for now capped at the next hurdle at 1.3580. However, positive tone, established on hourly chart, sees potential for fresh upside attempts, with sustained break above 1.3580 and more significant 1.3600 barrier, 50% retracement of 1.3698/1.3506 / daily Kijun-sen line / broken bull-trendline off 1.2754, required to spark stronger recovery. On the other side, negative 4-hour / daily studies, see the upside actions limited, as failure at 1.36 would keep the sideways mode in play, with the downside remaining vulnerable. Break below 1.35 support will be seen as a trigger of fresh extension of near-term downtrend from 1.3892, 27 Dec peak.

Res: 1.3580; 1.3600; 1.3625; 1.3648

Sup: 1.3535; 1.3506; 1.3460; 1.3430

Fresh bulls came in play as the price broke above near-term triangular consolidation and bear-trendline off 1.6602 peak, signaling attack at important 1.6515 barrier, 10 Jan lower top. Positive near-term studies support the advance, with corrective action on overbought hourly studies, expected to ideally find footstep at 1.6450/40 zone, previous consolidation tops / bull-trendline off 1.6307 / hourly 55DMA. Further easing below the latter, however, would delay immediate bulls for deeper pullback. Only loss of 1.64 higher platform would bring bears back in play.

Res: 1.6489; 1.6515; 1.6577; 1.6602

Sup: 1.6450; 1.6440; 1.6400; 1.6376

The pair enters range trading after upside rejection under 104.93 peak, with near-term price action established within 104.75 and 103.90 range. Holding above 104 handle, also near 50% retracement of 102.84/104.93 upleg, would keep the upside in play, as 4-hour studies hold positive tone. Regain of 104.93 and 105 hurdles is required to signal further upside and eventual attack at key 105.40 double-top. Otherwise, loss of higher platform at 103.90 would increase downside risk and formation of lower top at 104.75, as a part of near-term downtrend from 105.43, 02 Jan peak.

Res: 104.56; 104.75; 104.93; 105.05

Sup: 104.13; 103.89; 103.64; 103.30

The pair regains ground after break above near-term consolidative range and initial barrier at 0.8830, regain the next resistance at 0.8881, Fibonacci 38.2% retracement of 0.9084/0.8755 descend. Further advance is seen favored, as 4-hour studies gained strong momentum, however, overbought hourly conditions see scope for consolidative/corrective action ahead of next barriers at 0.8900/20, round figure / daily 20DMA / 50% retracement. The downside should be ideally protected at 0.8830, previous resistance, to keep fresh bulls intact. Potential stronger recovery would look for 0.9000 and pivotal 0.9084, 13 Jan lower top / daily 55DMA.

Res: 0.8900; 0.8920; 0.8932; 0.8958

Sup: 0.8850; 0.8830; 0.8800; 0.8775

The Euro maintains positive tone and consolidates around 1.37 handle, previous peak and daily Kijun-sen line, which was dented on Friday’s spike to 1.3738, level last time traded on 02 Jan. Stretched 4-hour studies, see scope for extended consolidation, with immediate support at 1.3660, consolidation floor, reinforced by 38.2% of 1.3529/1.3838 upleg; hourly 55DMA and daily cloud top, loss of which would trigger corrective action towards 1.3634, 50% retracement and 1.36 zone, Fibonacci 61.8% / 20/55DMA’s bullish crossover, above which stronger dips should be contained. On the upside, clearance of 1.3700/38 barriers would open strong 1.38 resistance zone, December’s congestion tops.

Res: 1.3700; 1.3738; 1.3800; 1.3815

Sup: 1.3660; 1.3634; 1.3600; 1.3580

Cable lost traction and ended Friday’s trading in red after strong pullback from fresh peak at 1.6668, probed below 1.65 handle and found temporary footstep at 1.6472. Reversal retraced over 50% of 1.6307/1.6668 rally that weakened near-term structure, as hourly studies turned negative and 4-hour indicators approaching the midlines. Larger picture bulls, however, remain intact and expected to resume higher after completion of corrective phase. Bounce off 1.6472 that probes above 1.65 barrier, would face broken bull-trendline off 1.6307 and 1.6550, above which to signal further recovery and avert immediate downside risk. Break above 1.66 hurdle is required to confirm. On the other-side, limited corrective action would keep the downside vulnerable, as slide below 1.65 handle would bring fresh weakness for retest of 1.6472 and 1.6445, Fibonacci 61.8% of 1.6307/1.6668; 1.6400, psychological support in extension.

Res: 1.6550; 1.6600; 1.6622; 1.6642

Sup: 1.6500; 1.6472; 1.6445; 1.6400

The pair enters near-term corrective phase off fresh low at 101.75, after two-legged weakness off 104.83, 23 Jan lower top slid through important 102.84 and 102.00 supports. Overall negative tone, established after repeated rejections at 105 hurdle and acceleration lower, keep the downside favored in the near-term, with fresh leg lower seen on a completion of corrective rally. Crack of initial 102.70 resistance, opens more significant 103.00 barrier, Fibonacci 38.2% of 104.83/101.75 descend, reinforced by hourly 55DMA and pivotal 103.57, 24 Jan lower top / near 61.8% retracement, where rallies should be ideally capped. Otherwise, break here would sideline near-term bears and shift focus higher. Initial support lies at 102.50, daily cloud top, ahead of 102.00 and 101.75 low, loss of which to confirm bearish resumption.

Res: 102.84; 103.00; 103.29; 103.57

Sup: 102.50; 102.00; 101.75; 101.60

The pair remains under pressure, as fresh weakness posted new low at 0.8658, initial target of Fibonacci 61.8% expansion of the wave from 0.9755 lower top. Corrective bounce above 0.87 barrier, so far holds below initial 0.8745/55 resistance, Fibonacci 38.2% retracement of 0.8886/0.8658 descend / hourly 55DMA / previous low, with break higher to confirm recovery mode. North heading hourly indicators support the notion, as 4-hour indicators are starting to reverse. However, overall negative structure keeps the downside at risk, with regain of minimum 0.88 barrier, required to ease bear-pressure and delay fresh bears. On the downside, psychological 0.87 level offers initial support, ahead of 0.8676, session low and 0.8658, loss of which to resume larger bears and expose 0.8600 and 0.8543, 50% retracement of multi-year 0.6007/1.1079 rally.

Res: 0.8745; 0.8755; 0.8800; 0.8832

Sup: 0.8700; 0.8676; 0.8658; 0.8600