EURUSD

The pair remains biased lower following yesterday’s probe and marginal close below 55SMA pivot that generated fresh bearish signal. Break lower was not sustained for now, with temporary base forming at 1.0590 zone. Subsequent bounce is seen corrective and should be capped by hourly Ichimoku cloud that lies above (cloud is spanned between 1.0628 and 1.6656), before bears resume. Initial target lies at 1.0583 (50% of 1.0339/1.0827 upleg), ahead of strong supports at 1.0550/25 (daily cloud base/Fibo 61.8% of 1.0339/1.0822 rally). Firm break above hourly cloud (cloud top is at the same level with yesterday’s high) would sideline immediate bears, in favor of stronger correction. Upper triggers lay at 1.0681 (Fibo 38.2% of 1.0827/1.0591) and 1.0708 (daily Tenkan-sen).

Res: 1.0628; 1.0640; 1.0656; 1.0681

Sup: 1.0590; 1.0550; 1.0525; 1.0509

GBPUSD

Cable fell back to key near-term support at 1.2440 (daily cloud top) and fully reversed yesterday’s strong rally, after weaker than expected UK data put pound under increased pressure.

Near-term structure weakened and focus is turning lower.

Plethora of strong supports between 1.2440 and 1.2410 (daily cloud top; 55/100 bull-cross and 30SMA) is a key for pair’s near-term action.

Sustained break here would risk further weakness towards next key level at 1.2345 (07 Feb spike low/daily Kijun-sen), to confirm lower top at 1.2580 on break lower.

However, light recovery could be expected while daily cloud top is holding, but regain of Monday/today’s tops at 1.2537/46 is needed to bring bulls fully in play.

Res: 1.2480; 1.2500; 1.2546; 1.2580
Sup: 1.2440; 1.2426; 1.2410; 1.2345

USDJPY

The pair is consolidating after yesterday’s failure to sustain break above 114.00 barrier.

Gains were capped by falling 30SMA and just under 114.28 pivot (Fibo 38.2% of 118.59/111.61 pullback).

The downside was so far protected by broken bear-trendline from 118.59 peak, currently at 113.25 (near Fibo 38.2% of 111.61/114.13 upleg).

Risk is turning at the downside, as slow stochastic is reversing from overbought territory – negative signal.

Firm break below the trendline/Fibo 38.2% support would trigger fresh acceleration and expose next pivot at 112.85 (daily Tenkan-sen) for stronger bearish signal.

Conversely, sustained break above 113.90/114.20 upper pivots, would improve near-term structure and signal extended recovery.

Res: 113.91; 114.20; 114.47; 114.93
Sup: 113.25; 112.85; 112.58; 112.20

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