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

The Euro enters near-term sideways mode following an upside rejection at 1.2576 and subsequent easing, which ended in yesterday’s close in red, but so far not making stronger impact on near-term price action, as fresh low at 1.2440, stays intact for now. Fresh bounce above 1.25 handle, signals that immediate downside risk is on hold. However, near-term tone remains negative, which suggests further consolidation, before fresh attempt lower, as overall picture is bearish. Daily 10EMA, which so far capped rallies, offers good resistance at 1.2571, with potential break here, expected to open breakpoints 1.2600, daily Tenkan-sen line and 1.2630, lower top of 30 Oct. Only break of the latter would neutralize risk of retesting 1.2440 and resumption of larger downtrend on a break.

Res: 1.2528; 1.2576; 1.2600; 1.2630

Sup: 1.2493; 1.2470; 1.2456; 1.2440

The pair returned to 1.60 zone, after spike lower, which cracked key 1.5873 support, proved to be false break. Yesterday’s red candle with long lower wick, signals further hesitation for sustained break below 1.5900, weekly cloud **** and 1.5873, 15 Oct low as magnetic 1.60 level continues to attract. Overall tone remains negative, with hourly studies being in neutral mode. On the upside, range tops / daily Tenkan-sen line and 50% of 1.6180/1.5867 downleg at 1.6025, offer strong resistance, with break and close above, to avert immediate downside risk, as short-term price action has established within 1.5870/1.6180 range. Otherwise, fresh attempts lower and close below 1.5867, would signal an eventual resumption of the downtrend from 1.7189, July 2014 peak, for test of 1.5750, June 2013 high and 1.5720, Fibonacci 61.8% of 1.4812/1.7189 ascend.

Res: 1.6000; 1.6025; 1.6037; 1.6052

Sup: 1.5953; 1.5923; 1.5900; 1.5867

The pair remains bullish overall, with fresh rally above psychological 115 barrier, posting new seven-year high at 115.50. Subsequent quick reversal, which found temporary footstep at 114 handle, could be seen as corrective action on strongly overbought 4-hour / daily studies. Overall bullish picture continues to focus the upside, with break above 115.50, to look for 117.95, Oct 2007 high and 120.26, Fibonacci 61.8% retracement of larger 147.68/75.55 descend, in extension. However, weakened hourly technicals cannot rule out further easing, with loss of 114 handle to signal stronger pullback towards 113.16 higher **** and Fibonacci 23.6% of 105.18/115.49 upleg.

Res: 114.83; 115.00; 115.50; 116.00

Sup: 114.00; 113.50; 113.16; 113.00

The pair eventually ended short-term consolidation, with break below the range floor at 0.8641, triggering fresh weakness through 0.8600 handle, to come ticks away from its next target at 0.8543, 50% retracement of 0.6007/1.1079 ascend. Yesterday’s close in red and below psychological 0.86 barrier, confirms negative scenario. Former range floor at 0.8641 now offers strong resistance and should ideally cap corrective rallies on oversold near-term studies. Potential break and close above here would delay bears. Key near-term barriers and breakpoints lay at 0.8760 lower platform / highs of the week and 0.8800 psychological barrier.

Res: 0.8641; 0.8673; 0.8700; 0.8730

Sup: 0.8600; 0.8551; 0.8543; 0.8500