Technical Outlook for Majors 02/08/2016

Technical Outlook for Majors 02/08/2016

EURUSD
The single currency maintains positive near-term tone and penetrated daily cloud base at 1.1167 which offered solid resistance in past few sessions, with fresh bulls probing above last Friday’s recovery peak at 1.1195.
Bullish signal was generated on violation of cloud’s base, adding on existing positive signals, generated on multiple bull-crosses of daily MA’s.
Broken 55SMA holds the downside for now, marking initial support at 1.1156 and maintaining positive sentiment.
Daily close above cloud’s base is required to confirm bullish stance for extension towards next significant barrier at 1.1230 zone (Fibo 61.8% of 1.1425/1.0907 downleg, reinforced by daily 100SMA), possibly to 1.1303 (Fibo 76.4%) in extension.
Layers of supports below 1.1156 stand at 1.1132 (5SMA) and 1.1091 (30SMA) that guards breakpoint at 1.1075 (200SMA / converged daily Tenkan-sen / Kijun-sen lines).

Res: 1.1207; 1.1230; 1.1262; 1.1303
Sup: 1.1167; 1.1156; 1.1132; 1.1091

eurusd-02.08

GBPUSD

Cable continues to trade within narrow range and without clear near-term direction, after repeated downside failure at 1.3356 (Fibo 61.8% of 1.2795/1.3478 upleg) formed strong daily base, with upside attempts being so far capped at 1.3300 zone.
Mixed daily studies support current stance which needs clear break out of near-term congestion to signal fresh direction.
However, overall structure remains bearishly aligned and keeps the downside at risk. The pair is awaiting BoE’s rate decision for clearer signals.
Res: 1.3298; 1.3312; 1.3400; 1.3450
Sup: 1.3163; 1.3115; 1.3055; 1.3000

gbpusd-02.08

USDJPY

Fresh bearish acceleration emerged after yesterday’s brief consolidation, extending the third wave from 106.52 (27 July lower top), to hit its 138.2% Fibonacci expansion at 101.46 (session low). Bearish daily studies favors further downside, after falling daily cloud repeatedly capped upside attempts.
Near-term focus is at next targets at 100.60 (FE 161.8%) and psychological 100.00 support in extension.
Oversold Slow Stochastic suggests corrective action the near term, but no bullish signal seen yet.
Yesterday’s consolidation floor marks initial resistance at 102.11, ahead of session high at 102.81 (also broken Fibo 61.8% of 99.97/107.47 upleg).
Extended rallies should stay capped by daily Kijun-sen line / 30SMA at 103.74.
Res: 102.11; 102.81; 103.37; 103.74
Sup: 101.46; 101.00; 100.60; 100.60

usdjpy-02.08

AUDUSD
Aussie regained traction after post RBA dip to 0.7487, contained by daily cloud top and posts new session highs on acceleration that extended above last Friday’s high at 0.7608. Fresh upside extension so far retraced over 76.4% of 0.7673/0.7419 pullback, confirming an end of corrective phase and higher base that have formed at 0.7440 zone.
Bullish technicals support final push for full retracement of 0.7673/0.7419 pullback, however, hesitation ahead key 0.7673 barrier could be anticipated, as Slow Stochastic entered overbought territory.
Dip-buying is seen favored, with extended corrective dips required to hold above daily Tenkan-sen line at 0.7520, to keep structure intact.
Res: 0.7645; 0.7673; 0.7717; 0.7763
Sup: 0.7600; 0.7575; 0.7545; 0.7520

audusd-02.08, Daily Market Outlook