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

The Euro maintains positive sentiment, as clearance and daily close above previous high at 1.3577, probed levels above psychological 1.3600 barrier. Subsequent consolidation was contained by 55DMA at 1.3560, with further easing on weak hourly studies, allowed towards 1.3530/00, Fibonacci 38.2% and 50% retracement of 1.3398/1.3611 upleg, before bulls return to play. Positive scenario is supported by bullish 4-hour studies, as well as daily indicators breaking above the midlines that favor further upside in the near-term. Immediate target lies at 1.3626, Fibonacci 61.8% retracement of 1.3831/1.3294 descend, ahead of 1.3645, Fibonacci 138.2% projection / previous peak of 03/10 and 1.3710, 02/01 peak / Fibonacci 76.4% retracement. Alternative scenario see loss of 1.35 handle to weaken near-term structure and trigger stronger pullback towards 1.3450, 50% retracement of larger 1.3294/1.3611 ascend and 1.3398, 21/11 higher low, in extension.

Res: 1.3600; 1.3611; 1.3626; 1.3645

Sup: 1.3557; 1.3520; 1.3500; 1.3489

Cable eventually broke above two-month congestion top at 1.6259, with daily close above here, confirming bullish resumption of larger uptrend from 1.4812 that was delayed by 1.6259/1.5853 consolidation. Break above the next hurdle at 1.6300, with 1.6329 seen so far, sees scope for final push towards key med-term resistance at 1.6380, 02/01 annual peak, as completion of 1.6380/1.4812 bear-phase, would look for fresh extension higher, as the price cracked 1.6292, bear-trendline drawn off 1.7041, 2009 high. Near-term technicals maintain positive tone, however, overextended conditions suggest hesitation on approach to key hurdle at 1.6380. Previous high at 1.6259/54 offer solid support, ahead of psychological 1.6200 support and 1.6135 higher platform.

Res: 1.6329; 1.6380; 1.6400; 1.6453

Sup: 1.6255; 1.6239; 1.6200; 1.6135

The pair remains steady and posts fresh highs above 102.00 level that now offers initial support. Overbought near-term conditions, see corrective action as likely near-term scenario, before bulls resume larger uptrend. Psychological 103.00 barrier and annual peak at 103.82, remain as near-term targets. However, caution is required, as daily studies enter overbought territory. Corrective extension below initial 102 support zone, session low / 25/11 previous high, to open more significant 101 zone higher platform, loss of which would sideline near-term bulls.

Res: 102.26; 102.50; 103.00; 103.50

Sup: 102.00; 101.80; 101.13; 101.00

The pair posted fresh low at 0.9064 yesterday, after losing psychological / Fibonacci 0.9100 support, with subsequent bounce above the latter, being triggered by oversold conditions. Extension to 0.9139 cracked initial resistance and lower platform at 0.9133, with hourly studies turning positive and completion of hourly cup and holder pattern, suggesting further recovery, with the notion being supported by bullish divergence on lower timeframes. Sustained break above 0.9139, where 4-hour 20DMA capped for now, is required to open more significant 0.9200 resistance zone, 26/11 upside rejection and Fibonacci 38.2% of 0.9446/0.9064 / 55DMA. Only break here to signal stronger corrective action and sideline bulls. Conversely, failure under 0.9200 barrier would risk formation of lower top and fresh bears, with break below 0.9064 to open psychological 0.9000 support.

Res: 0.9139; 0.9177; 0.9200; 0.9255

Sup: 0.9116; 0.9100; 0.9064; 0.9036