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

The Euro ended week in positive tone, following last Friday’s strong rally from 1.3550 zone, where higher **** was formed, with support being reinforced bull-trendline off 1.2754 / daily 100DMA. Rally to 1.3686, so far retraced 50% of 1.3817/1.3547 downleg, with near-term technicals returning to bullish mode. Consolidation on overextended hourly studies is under way and so far contained at previous double-top at 1.3655, with further upside seen favored in the near-term. Immediate barriers lay at 1.3700/15 zone, round-figure / Fibonacci 61.8% retracement / daily Tenkan-sen / Kijun-sen bearish cross, above which to open way towards strong 1.38 resistance zone. Any further dips should be ideally contained above 1.3630, 50% retracement of Friday’s 1.3567/1.3686 rally, to keep bulls in play.

Res: 1.3686; 1.3700; 1.3715; 1.3753

Sup: 1.3655; 1.3630; 1.3612; 1.3595

Cable maintains positive near-term tone, as weekly close occurred just under 1.65 barrier, following last Friday’s bumpy post-US data ride, when price dipped to 1.6380, but quickly recovered losses. As 1.65 resistance, also Fibonacci 61.8% retracement of 1.6602/1.6336 descend, has been cracked, further upside is favored and requires clear break here to open key resistance at 1.6602, 02/01 peak. Positively aligned near-term studies support the notion, with corrective dips allowed to 1.6400, 61.8% of last Friday’s 1.6380/1.6515 rally, otherwise, downside pressure would increase on a violation of 1.6400/1.6380 supports

Res: 1.6450; 1.6500; 1.6515; 1.6539; 1.6577

Sup: 1.6480; 1.6447; 1.6430; 1.6400

The pair lost ground after last Friday’s upside rejection on approach to key 105.40 barrier and subsequent acceleration lower, losing 104.26 trendline support and more significant 104 ****. Fresh weakness approaches next support 103.00, psychological support / Fibonacci 61.8% retracement of 101.60/105.43 ascend, with bearish near-term technicals keeping the downside in focus and the notion being supported by daily Evening Doji star. However, oversold conditions of lower timeframes studies, suggest consolidative / corrective phase, ahead of fresh weakness, with no reversal signal being generated yet. On the upside, previous supports at 103.90/104.00, offer initial and solid resistance, ahead of broken bear-trendline at 104.30, also 50% of last Friday’s fall, where rallies should be ideally capped.

Res: 103.90; 104.04; 104.30; 104.55

Sup: 103.24; 103.00; 102.50; 102.14

The pair regained strength and eventually broke above three-week congestion top at 0.9000, with fresh extension to 0.9046, marking over 61.8% retracement of 0.9165/0.8819 downleg. Immediate threat of fresh weakness and resumption of larger downtrend, is now sidelined, as near-term price action moves in corrective mode. Regain of key barrier at 0.9165, 10/12 high, is required to neutralize bears and confirm **** at 0.8820 zone. However, overbought conditions of 1 and 4-hour chart studies, would delay fresh upside attempts and allow for consolidative/corrective action, with initial support laying at 0.9000, reinforced by hourly 20DMA and 0.8960, 50% of 0.8879/0.9040 upleg, reinforced by hourly 55DMA, expected to contain. On the upside, next hurdles lay at 0.9083/91, Fibonacci 76.4% / 4-hour 55DMA, with clearance of psychological 0.9100 barrier, to clear way towards key 0.9165 level. Reversing daily indicators are supportive for further recovery action.

Res: 0.9040; 0.9083; 0.9100; 0.9165

Sup: 0.9000; 0.8978; 0.8960; 0.8940