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

The Euro got unleashed again, after weaker than expected US jobs data pushed the dollar significantly lower. The single currency completed multi-year 1.3710/1.2042 bear-phase on a break above 1.3710, 2013 annual peak. Fresh extension higher reached levels close to psychological 1.3800 barrier, with next target lying at 1.3832, Fibonacci 38.2% retracement of 1.4938/1.2042 descend. Overbought near-term technicals suggest hesitation ahead of 1.38 barrier, with corrective easing to face initial supports at 1.3710/00, ahead of 1.3670, 38.2% retracement of 1.3472/1.3792 rally and higher **** at 1.3650, where dips should be ideally contained.

Res: 1.3792; 1.3832; 1.3850; 1.3900

Sup: 1.3710; 1.3670; 1.3650; 1.3630

Cable enters near-term corrective mode, following yesterday’s fresh rally above 1.6223 barrier that stalled on approach to key resistance at 1.6259. Weakening hourly studies bring immediate threat towards strong 1.6114 support and higher low that also marks 38.2% retracement of 1.5892/1.6254 upleg. Potential break here would sideline immediate bulls and push the price towards mid-points of near-term 1.5892/1.6259 range. Alternatively, fresh attempt at 1.6259 and break above 1.6259, towards short-term targets at 1.6300/80, would be likely scenario, as 4-hour studies remain bullish. However, caution is required, as daily technicals are losing momentum.

Res: 1.6200; 1.6223; 1.6254; 1.6259

Sup: 1.6114; 1.6100; 1.6073; 1.6030

The pair came under increased pressure recovery rally from 97.54 stalled at 98.44 and subsequent weakness erased gains on break below 97.54 handle. Immediate targets at 97.13, 76.4% of 96.55/98.99 and psychological 97.00 support, come under pressure, as the lower top was formed at 98.44. Extension of near-term downtrend from 98.99, would look for full retracement of 96.55/98.44, once 97.00 is cleared. Negative near-term studies support the notion, however, bears may be delayed, as hourly studies are oversold, with corrective bounce expected to hold below 98.00, 20/55DMA’s bearish crossover. Only break above 98.44 would improve near-term structure and avert immediate downside risk.

Res: 97.54; 97.85; 98.00; 98.20

Sup: 97.25; 97.13; 97.00; 96.55

The pair remains supported as fresh extension higher posted new high at 0.9755, earlier today. Break above 0.9714, 50% retracement of larger 1.0581/0.8846 descend, with positive overall picture, keeps the upside favored, with current corrective pullback expected to precede fresh attempt higher. Initial supports lay at 0.9630/00, session low / round figure support, the latter being underpinned by rising 55DMA. Any deeper dips, however, should not exceed 0.9500 support, also 50% of 0.9280/0.9755 rally. Upside extension above 0.9755, would look for 0.9770/90; 04/03 / 06 peaks.

Res: 0.9678; 0.9700; 0.9755; 0.9770

Sup: 0.9630; 0.9600; 0.9574; 0.9526