EURUSD
The Euro is strong bearish mode for the second day, extending yesterday’s bearish acceleration that eventually closed below daily cloud base / 200SMA that was marking strong support. Fresh weakness came after repeated long-legged Doji candles that signaled indecision, as near-term price action was unable to establish in clear direction.
Yesterday’s firm break below daily cloud base and long red candle that was left, generated strong bearish signal. Fresh weakness extended below key supports at 1.1122 (former daily higher base and 1.1108 (Fibo 61.8% of larger 1.0950/1.1365 ascend).
The pair is also on track for strong bearish weekly close that will signal further weakness in the near-term. Daily close below 1.1108 is needed to confirm bearish stance.
Focus is on US jobs data, with strong numbers expected to further pressure the single currency which may extend losses towards 1.1045 (05 Aug trough / Fibo 76.4%) and psychological 1.1000 support. On the other side, downside surprise on US NFP data would boost the Euro.
Session high at 1.1150 marks initial resistance, ahead of 1.770 zone (broken 200SMA / daily cloud base), which should cap corrective attempts.

Res: 1.1150; 1.1170; 1.1180; 1.1214
Sup: 1.1100; 1.1045; 1.1000; 1.0950

GBPUSD

Cable bounced back to 1.2450 zone after overnight’s crash that spiked below 1.2000 support. Extended wave C of five-wave cycle from 1.3443, met its 200% Fibonacci expansion target, with correction under way, signaled by Slow Stochastic reversal from oversold zone. Bounce from session low hit 1.2475 (Fibo 61.8% of past two days fall from 1.2575), where good resistance lies.
Overall sentiment remains firmly bearish and favors further downside. Fresh attempts lower through session spike low may stretch towards 1.1655 (FE261.8%).
Meantime, the pair is expected to consolidate overnight’s strong losses. Above European session recovery high at 1.2475, next strong barrier lies at 1.2620 (daily high / broken bear-channel support line) which is expected to cap extended upticks and guard former post-Brexit low and critical support, now reverted to strong resistance at 1.2795.
Res: 1.2475; 1.2520; 1.2620; 1.2725
Sup: 1.2317; 1.2190; 1.1995; 1.1655

USDJPY

The pair is trading within 50-pips range consolidation, ahead of US jobs data. Steep eight-day rally from 100.05 base peaked at 104.15 on Thursday, after the price surged through daily Ichimoku cloud. The rally came close to key short-term barriers at 104.30 (02 Sep high) and 104.43 (Fibo 61.8% of 107.47/99.52 fall), break of which will open way for further retracement of larger 107.47/99.52 descend. Sentiment remains firmly bullish and sees scope for further upside on positive US data, as the pair is on track for strong weekly bullish close, ignoring for now overbought Slow Stochastic conditions.
Session low at 103.50 marks initial support (also near former peak at 103.34), followed by daily cloud top at 103.22, which is expected to contain extended dips, before bulls resume.
Res: 104.30; 104.43; 105.00; 105.60
Sup: 103.50; 103.22; 102.60; 102.10

AUDUSD
The pair remains in red and holds below broken key supports at 0.7585 (former correction lows / daily Kijun-sen line). Marginally lower low was posted today at 0.7558, after the wave C from 0.7688 lower top (part of five wave cycle from 0.7708 peak) exceeded its FE 100% target at 0.7569. Next targets lay at 0.754/20 zone, consisting of Fibo 61.8% of 0.7440/0.7708 rally / daily cloud base / FE 138.2% of the wave C, break of which would extend the wave towards its 161.8% and 176.4% Fibonacci expansion levels at 0.7495 and 0.7477 respectively.
Broken Kijun-sen marks solid resistance at 0.7585, ahead of daily cloud top at 0.7605. Only firm break here would sideline near-term bears.
Res: 0.7585; 0.7621; 0.7639; 0.7658
Sup: 0.7558; 0.7542; 0.7530; 0.7523

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