Windsor Brokers - Short Term Technical Analysis for Majors (07:00 GMT)

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Res: 1.3649; 1.3667; 1.3687; 1.3733

Sup: 1.3585; 1.3561; 1.3519; 1.3500

Cable remains under pressure, with near-term price action being in corrective mode after denting psychological 1.67 support. The recovery is so far limited, as the price remains capped by 38.2% retracement of 1.6917/1.6691 at 1.6777, with break here and psychological 1.6800 hurdle, required to open stronger recovery. Key near-term barrier and the first pivot lies at 1.6860, bear-trendline off 1.6995 peak and break here is required to confirm reversal, signaled by Morning Star pattern formation on a daily chart. Otherwise, extension of larger bears off 1.6995 would remain in play, as larger picture remains bearish. Slide below fresh low at 1.6691 is required to confirm scenario and open 1.6667, Fibonacci 61.8% of 1.6464/1.6995 and 1.6600, round figure support, in extension lower.

Res: 1.6760; 1.6776; 1.6800; 1.6835

Sup: 1.6723; 1.6703; 1.6691; 1.6667

The pair continues to consolidate under fresh high at 102.13, with the downside being so far contained by 101.41, near 50% retracement of 100.81/102.13 ascend. Near –term studies are positive, as the price trades near the upper barriers, with break above 102.13, required to signal resumption of recovery rally off 100.81 and open next pivot at 102.35, 13 May peak / near daily cloud ****. Alternatively, failure to clear 102.13, would risk further consolidation, while slide below 101.41, 29 May low and retest of multi-month **** at 101.20, would risk further weakness, with break below low at 100.81/74, 21 May spike low / 04 Feb low, to spark fresh bear-phase and resumption of larger downtrend from 105.43, 02 Jan year-to-date high.

Res: 102.13; 102.35; 102.78; 103.09

Sup: 101.83; 101.67; 101.41; 101.20

Res: 0.9274; 0.9287; 0.9312; 0.9330

Sup: 0.9238; 0.9207; 0.9177; 0.9121

Res: 1.3635; 1.3649; 1.3667; 1.3687

Sup: 1.3585; 1.3561; 1.3519; 1.3500

Cable remains under pressure, with near-term price action in consolidative mode, after corrective attempt off fresh low at 1.6691, ran out of steam at 1.6776, Fibonacci 38.2% retracement of 1.6880/1.6691 descend, reinforced by 55SMA. Failure to break here and psychological 1.6800 barrier, which would open bear-trendline resistance at 1.6850, would fail to complete Morning Star pattern formation and risk fresh weakness as hourly studies are neutral , while larger timeframes studies maintain negative tone. Push below 1.6691 to confirm bearish resumption and open 1.6667, Fibonacci 61.8% / 100SMA next and psychological 1.66 support in extension.

Res: 1.6760; 1.6776; 1.6800; 1.6835

Sup: 1.6723; 1.6703; 1.6691; 1.6667

The pair eventually broke above 102.13 and 102.35 barriers, on a fresh strength that so far tested 76.4% retracement of 103.01/100.81 descend at 102.46. This opens way for final push towards the next pivot at 103 zone, also short-term range top. However, corrective action is likely to precede fresh attempts higher as near-term studies are overbought. Ideal support lies at 102 zone, Fibonacci 38.2% retracement of 101.41/102.46 rally, reinforced by 55SMA and should contain corrective dips. Otherwise, weakness below here and yesterday’s low/ daily 20Sma at 101.74, will be bearish.

Res: 102.49; 102.78; 103.01; 103.75

Sup: 102.13; 102.00; 101.74; 101.41

Res: 0.9279; 0.9291; 0.9312; 0.9330

Sup: 0.9259; 0.9228; 0.9207; 0.9177

The Euro’s recovery attempts off fresh low at 1.3502 remain limited under 1.37 resistance zone, Fibonacci 38.2% retracement of entire 1.3992/1.3502 descend. This keeps the first break point at 1.3730 lower platform intact for now, as overall picture stays bearish. Weaker near-term studies shift focus lower again, as the price returns to the previous **** at 1.36 zone and reversal pattern forming on a daily chart, along with 20/200SMA death-cross, maintaining downside pressure. Daily close below 1.36 handle is required to confirm negative stance for repeated attack at 1.3500/1.3475 breakpoints, loss of which to confirm double-top formation and trigger stronger correction of one-year uptrend from 1.20 zone.

Res: 1.3676; 1.3700; 1.3733; 1.3750

Sup: 1.3580; 1.3561; 1.3502; 1.3475

Cable consolidates recent gains on a recovery rally from 1.6691, trading in a sideways mode under fresh high at 1.6844. As the downside stays protected at 1.6770 zone, also 20/55SMA bull-cross and near-term studies are positively aligned, renewed attempts higher should be favored in the near-term. Break above 1.6844 high to resume recovery and open 1.6880 lower top, ahead of key hurdles at 1.6917/19. However, clearance of main bear-trendline at 1.6830 zone, is seen as minimum requirement to signal bullish resumption.

Res: 1.6830; 1.6844; 1.6880; 1.6900

Sup: 1.6782; 1.6767; 1.6749; 1.6725

Near-term price action is losing ground as the pullback off fresh high at 102.78 extends lower and threatens key near-term support and pivotal point at 102.10. Hourly studies turned negative, while 4-hour indicators are at their midlines. Weakness below 102.10/00 supports, also 50% retracement of 101.41/102.78 upleg , to confirm reversal and allow for stronger correction. On the other side, overall bullish tone, keeps the upside favored, with 102 zone seen as ideal reversal point for fresh attempt at key 103 barrier and resumption of larger up-move from 100.81, 201 May low.

Res: 102.63; 102.78; 103.01; 103.75

Sup: 102.25; 102.10; 101.79; 101.41

The pair's near-term structure remains positive, with the price action heading towards 0.94 barrier, on a rally from 0.92 ****. Extension above the next impotent barrier at 0.9407, is required to confirm reversal and **** formation at 0.92 zone, for eventual push to the key 0.9460 peak. Hesitation on approach to 0.9407 could not be ruled out, with 0.93 support area, seen as ideal reversal point, before fresh attempt higher.

Res: 0.9374; 0.9407; 0.9460; 0.9500

Sup: 0.9350; 0.9333; 0.9318; 0.9300

The Euro remains pressured and returns to 1.35 zone after recovery attempts off fresh low at 1.3502 stalled on approach to 1.37 resistance zone, Fibonacci 38.2% retracement of1.3992/1.3502 descend. This keeps the first break point at 1.3730 lower platform intact for now, as overall picture stays bearish. Weak near-term studies keep focus at the downside, as 20/200SMA death-cross, maintaining downside pressure. Continuation of bear-trend is seen on a break below 1.35 handle and 1.3475 higher low and pivotal support, as break lower will confirm double-top formation and trigger stronger correction of the uptrend from 1.20 zone. However, further consolidation above 1.35 support could be expected as near-term studies approach oversold territory.

Res: 1.3556; 1.3600; 1.3620; 1.3667

Sup: 1.3502; 1.3475; 1.3450; 1.3400

Cable corrects recent gains on a recovery rally from 1.6691, with weakening near-term tone, seen on easing from fresh high at 1.6844, as recovery attempts were capped by main bear-trendline and the pullback extended below 61.8% retracement of 1.6697/1.6844 ascend. Further easing would threaten 1.67 ****, with break here to signal extension on larger downmove off 1.6995 peak and open targets at 1.6666, Fibonacci 61.8% retracement and psychological 1.66 support in extension. The upside so far stays protected at 1.6820, trendline resistance and only penetration here and lower top at 1.6844, would sideline downside risk.

Res: 1.6779; 1.6800; 1.6820; 1.6844

Sup: 1.6736; 1.6700; 1.6666; 1.6600

Near-term price action is losing ground as the pullback off fresh high at 102.78 extends lower and threatens for retest of key near-term support and pivotal point at 102.10. Hourly studies turned negative, while 4-hour indicators are breaking in the negative zone. Weakness below 102.10/00 supports, also 50% retracement of 101.41/102.78 upleg , to confirm reversal and allow for stronger correction. On the other side, overall bullish tone, keeps the upside favored, with 102 zone seen as ideal reversal point for fresh attempt at key 103 barrier and resumption of larger up-move from 100.81, 201 May low.

Res: 102.41; 102.63; 102.78; 103.01

Sup: 102.25; 102.10; 101.79; 101.41

The pair's near-term structure remains positive, with the price action approaching 0.94 barrier, on a rally from 0.92 ****. Extension above the next significant barrier at 0.9407, 14 May peak, is required to confirm reversal and **** formation at 0.92 zone, for eventual push to the key 0.9460 peak. Hesitation on approach to 0.9407 barrier cannot be ruled out, with corrective easing to be contained above 0.93 support area, before fresh attempt higher.

Res: 0.9388; 0.9407; 0.9460; 0.9500

Sup: 0.9362; 0.9330; 0.9318; 0.9300

The Euro remains in near-term consolidative phase above 1.35 support, after previous week’s recovery attempts were capped by falling 55SMA. Weekly close occurred at the lower levels of 1.3511/1.3577 range and keep the near-term structure weak for resumption of larger downtrend from 1.3992 08 May peak. Negative daily studies support the notion, however, overextended conditions may trigger extended consolidation, ahead of fresh leg lower. Break below 1.35 handle to open way for attack at the next significant support at 1.3475, 03 Feb higher low / main bull-trendline off 1.2042 low, loss of which to complete 1.3475/1.3992 bull-leg and confirm double-top formation for fresh acceleration lower and further retracement. Recovery peak and 38.2% of 1.3676/1.3511 at 1.3577, offers initial resistance, along with 1.3585 lower ****, reinforced by daily Tenkan-sen line, break of which would put bears on hold in favor of stronger recovery. Key near-term barrier lies at 1.3676, 06 June lower high and 38.2% of 1.3992/1.3502, break above which is required to confirm **** and trigger further recovery.

Res: 1.3577; 1.3600; 1.3645; 1.3667

Sup: 1.3520; 1.3511; 1.3502; 1.3475

Cable remains supported and eventually cracked 1.7000 barrier, following acceleration off 1.6736 higher low. Overall positive picture favors fresh phase higher, once the pair clearly breaks 1.70 barrier, with immediate target at 1.7041, Aug 2009 peak. However, consolidative action around 1.70 handle is expected to precede fresh bulls, as condition on 4-hour chart are overbought. Previous peaks at 1.6917/19, along with psychological/ Fibonacci 38.2% retracement 1.69 support, are seen as ideal points to contain corrective dips.

Res: 1.7009; 1.7041; 1.7100; 1.7150

Sup: 1.6941; 1.6919; 1.6900; 1.6844

Near-term price action has lost ground and extended pullback off fresh high at 102.78 below pivotal 102.10/00 support zone, to find temporary support at 101.59, near Fibonacci 61.8% of 100.81/102.78 upleg and 200SMA. This confirms negative near-term structure and keeps the downside in near-term focus, as brief corrective attempt off 101.59 low was capped by descending 55SMA. False break through 102 handle and return to the levels close to 101.59 low, keep near-term focus At the downside. However, larger picture still holds bullish tone is and while dips stay contained above 101.50/41, 200SMA / 29 May higher low, scope will exist for fresh attempts higher. Regain and daily close above 102 handle is seen as minimum requirement for bullish scenario. Otherwise, slide to short-term range floor at 100.81/74, would be expected in case of fresh weakness below 101.59/41 supports.

Res: 102.12; 102.41; 102.63; 102.78

Sup: 101.70; 101.59; 101.41; 101.20

The pair holds positive near-term structure, as the price underwent consolidative action which was supported at 0.9373, with fresh attempt through 0.94 barrier under way. Eventual push towards the key 0.9460 peak is seen as likely near-term scenario, with break higher to complete short-term corrective phase off 0.9460 and resume larger uptrend off 0.8658, annual low. However, further consolidative action is not ruled out and should be ideally contained above 0.9330/20 support area, 30 May previous peak / 50% retracement of 0.9209/0.9437 upleg.

Res: 0.9437; 0.9460; 0.9500; 0.9550

Sup: 0.9373; 0.9349; 0.9330; 0.9320