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

The Euro slumped close to 1.34 support, erasing a good part of last week’s gains and over 50% of entire rally from 1.3294 to 1.3577. Fresh pressure on the single currency, triggered by fundamentals, turned near-term technical outlook negative. Increased risk of lower top at 1.3577 is seen, as the price approached 1.3400, psychological support / 61.8% of 1.3294/1.3577 upleg. Break here to open way towards 1.3360, daily cloud **** and key supports at 1.33 zone, 07/11 low / 50% retracement of larger 1.2754/1.3831 rally. Narrow consolidation above 1.34 handle is under way, with oversold hourly studies suggesting a break in the recent weakness. The near-term action is for now limited by former platform at 1.3430, with broken bull-trendline off 1.3294 offering next resistance at 1.3460, also near 38.2% of 1.3577/1.3412 / 55DMA at 1.3575. Any stretch higher should be ideally capped at 1.35 zone, 50% retracement and double bearish 10/55 and 20/55DMA’s crossover.

Res: 1.3430; 1.3460; 1.3475; 1.3500

Sup: 1.3412; 1.3400; 1.3360; 1.3294

Cable came under pressure after failure to regain psychological 1.62 barrier and subsequent pullback broke below 1.61 handle, extending losses to 1.6071, 4-hour 55DMA so far. Negative hourly structure keeps the downside at risk, as 4-hour studies are losing momentum that may trigger further weakness, as long as the price holds below 1.61 resistance zone and 10/55; 20/55DMA’s bearish crossover that offers initial and solid resistance. Further easing would face immediate support at 1.6058/53, 19/11 low / 38.2% retracement of 1.5853/1.6177 ascend / daily Kijun-sen line, also near-term consolidation floor, loss of which will be bearish. Conversely, lift above 1.61 handle, would open the upper boundary of near-term congestion and signal possible resumption of the uptrend from 1.5853.

Res: 1.6110; 1.6147; 1.617; 1.6200

Sup: 1.6071; 1.6053; 1.6015; 1.6000

The pair returned to strength and break above near-term consolidation, with fresh extension higher, clearing key barrier at 100.60. The price aims towards psychological 101.00 barrier, with another key hurdle at 101.52, 08/07 peak, expected to come in focus, once 101 is cleared. Near-term studies remain bullish and favor further upside, however, overbought hourly conditions warn of possible hesitation on approach to 101 barrier. Previous highs at 100.60/42, offers immediate supports, while further corrective easing should ideally hold above 100.00/99.80 levels, to keep bulls intact.

Res: 101.00; 101.37; 101.52; 102.00

Sup: 100.60; 100.42; 100.24; 100.00

The pair came under pressure and accelerated losses from 0.9446, where gains were capped by daily 20DMA a double top formed. Fresh weakness that broke below psychological 0.9300 support, threatens full retracement of 0.9269/0.9446 corrective rally, as the price came tick away from this support, with break lower to spark fresh extension of larger downmove from 0.9755, 23/10 peak, towards 0.9221, Fibonacci 61.8% of 0.8891/0.9755 and psychological 0.9200 support. However, oversold hourly studies may trigger consolidative/corrective action. Previous support at 0.9300, offers immediate resistance, ahead of 0.9350, 19/11 low, with stronger corrective rallies to be limited under 0.9400, psychological barrier / 20/55DMA’s bearish crossover.

Res: 0.9300; 0.9333; 0.9350; 0.9400

Sup: 0.9269; 0.9221; 0.9200; 0.9187