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

The Euro regained strength after Monday’s weakness was contained above near-term consolidation floor and 55 DMA, with fresh gains above 1.35 handle, aiming towards the range’s upper boundary. Lower timeframes studies are positive and support final push through 1.3567 peak, for resumption of larger uptrend towards initial barrier at 1.3600 and key resistance and near-term target at 1.3710, 01/02 annual high. Initial supports lay at 1.3536 and 1.3517, while loss of 1.3500 would weaken the structure again.

Res: 1.3563; 1.3567; 1.3600; 1.3650

Sup: 1.3536; 1.3517; 1.3500; 1.3476

Cable remains firm and continues to trend higher, as final push through 1.6179/1.6200 hurdles, resumes the larger uptrend from 1.4812, annual low. As the last obstacles en-route to short-term targets at 1.6308 and 1.6380 were cleared, likely scenario would be test of Apr/Sep 2012 highs at 1.6300/08 and 1.6380, 2012 high. Positive technicals support the notion, however, overbought conditions on lower timeframes, suggest corrective easing, with initial supports at 1.6200 and 1.6179/61, previous highs.

Res 1.6300; 1.6308; 1.6350; 1.6380

Sup: 1.6200; 1.6180; 1.6161; 1.6126

The pair remains under pressure, as recovery rally from fresh low at 97.48 was capped by bear-trendline at 97.70. Hourly studies are losing traction, with 4-hour technicals maintaining negative tone that sees increased risk of lower top formation and resumption of bear phase from 100.60, with slide below 97.48, required to confirm. Bearish continuation to focus 97.00 zone, higher platform / Fibonacci 76.4% of 95.78/100.60 and broken bear channel line, drawn off 101.52 peak. Any stronger recovery would require clear break above 99.00 barrier, to avert immediate downside risk.

Res: 98.00; 98.45; 98.71; 99.00

Sup: 97.62; 97.48; 97.00; 96.90

The Aussie regains strength after repeated attempt lower was contained at 0.9280, Fibonacci 38.2% of 0.8891/0.9526 rally, where near-term **** has been formed. Fresh rally above 0.9400 barrier, also 50% of 0.9526/0.9280 fall, turns near-term technicals positive and shifts focus higher. However, to confirm higher low formation, regain of lower top at 0.9455 is required. Overbought hourly studies see risk of corrective pullback, with dips to be ideally contained at 0.9350 zone.

Res: 0.9422; 0.9455; 0.9483; 0.9500

Sup: 0.9390; 0.9368; 0.9350; 0.9334