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

The Euro lost ground on yesterday’s acceleration off daily high at 1.3750 zone and broke below strong 1.3700/1.3585 support zone. The fall was interrupted by correction from 1.3660, Fibonacci 38.2% retracement of 1.3482/1.3772 upleg / daily 55SMA, to 1.37 zone, now reverted to resistance. Negative tone established on lower timeframes keeps the downside at risk, as fresh weakness through 1.3660/50, previous low / daily Tenkan-sen line / 20SMA, opens 1.3620, daily 100SMA / near 50% of 1.3482/1.3770 and psychological 1.3600 support, also Fibonacci 61.8% retracement. On the upside, previous consolidation floor at 1.37 zone, reinforced by 4-hour 10/55SMA’s bear cross, offers solid resistance and is expected to cap. Only break and close above here would sideline immediate bears.

Res: 1.3700; 1.3720; 1.3755; 1.3772

Sup: 1.3620; 1.3600; 1.3561; 1.3550

Cable remains in near-term sideways mode, with price action being established within 1.6620 and 1.6725 range. Lack of momentum to sustain gains above 1.67 barrier, triggered pullback to 1.6620, keeping strong 1.66 support intact for now. Neutral tone prevails on near-term studies and sees fresh direction on a break through either of range limits, while larger picture bulls remain in play and see the upside favored, once corrective phase off 1.6821 peak is completed. Ideally, 1.66 handle should keep the downside protected, otherwise broader bulls may be delayed in case the price clearly breaks below 1.66 support.

Res: 1.6700; 1.6725; 1.6740; 1.6800

Sup: 1.6656; 1.6619; 1.6600; 1.6582

Near-term price action enters neutral mode, with price moving within 102.00 and 102.60 range. Psychological 102 support is reinforced by bull-trendline, drawn off 100.79 low and Fibonacci 38.2% retracement of 100.79/102.82 upleg, with break here seen increasing downside risk. On the upside, immediate barriers lay at 102.60, ahead of near-term congestion tops at 102.70, reinforced by daily Kijun-sen line, above which to signal resumption of recovery rally from 100.74, 04 Feb low.

Res: 102.59; 102.82; 103.09; 103.43

Sup: 102.22; 102.00; 101.57; 101.37

The pair came under pressure after the price broke below one–week range floor at 0.8930 zone and Fibonacci 38.2% retracement of 0.8658/0.9079 ascend, attempting at psychological 0.8900 support, also daily Ichimoku cloud ****. Hourly studies are negative and reached oversold zone, while 4-hour indicators broke below their midlines that suggests further downside. Consolidation around 0.89 handle would likely precede fresh leg lower, which is going to test Fibonacci supports of 50% and 61.8% retracement at 0.8869 and 0.8819 respectively, with the latter also marking previous 28/30 Jan consolidation top. Lower tops at 0.8944 and 0.8967 offer initial resistances, while stronger recovery rallies should be ideally capped under psychological 0.9000 resistance, near 61.8% retracement of 0.9048/0.8902 descend.

Res: 0.8944; 0.8967; 0.9000; 0.9024

Sup: 0.8900; 0.8869; 0.8819; 0.8800