EUR/USD

Yesterday’s strong downside rejection that left long-tailed daily candle signals extended consolidation / correction before larger bears resume.

Fresh extension of bounce from 1.0520 low probes above initial barrier at 1.0600 (55SMA), above which would signal stronger correction of 1.0827/1.0520 downleg.

Slow stochastic emerged from o/s territory and supports this scenario.

Good resistances that lay at 1.0641 (Fibo 38.2% of 1.0827/1.0520) and 1.0666 (10/30SMA bear-cross) should limit corrective action.

Upper breakpoint lies at 1.0695 (20SMA), break of which would signal an end of correction from 1.0827 (02 Feb high)

Res: 1.0640; 1.0666; 1.0695; 1.0737
Sup: 1.0600; 1.0559; 1.0520; 1.0454

GBP/USD

Near-term focus turned higher again, following yesterday’s strong downside rejection that confirmed false break into daily cloud.

Today’s extension of strong bounce from 1.2382 (yesterday’s spike low) also completed inverse H&S pattern on hourly chart that signals further upside.

Fresh gains approach 1.2500 pivot (also broken bull-trendline off 1.1986 low) that marks a trigger for renewed attack at key 1.2550 zone barriers.

Daily 55 / 100 /30 SMA’s at 1.2426/17 zone remain key near-term supports, together with daily cloud top at (currently at 1.2404).

Bullish near-term bias is expected to stay in play while the price holds above these supports.

Res: 1.2500; 1.2550; 1.2580; 1.2619
Sup: 1.2452; 1.2426; 1.2404; 1.2382

USD/JPY

Pullback from yesterday’s strong upside rejection at 115.00 barrier (55SMA) extends today and probes below pivots at 113.65/60 (Fibo 38.2% of 111.57/114.94 upleg / daily Kijun-sen).

Break here would generate stronger bearish signal for further easing.

Yesterday’s bearish candle with long upper shadow weighs, along with slow stochastic that reversed from o/b territory and showing plenty of room at the downside.

Near-term risk is turning towards next pivot at 113.26 (daily Tenkan-sen / 50% retracement), loss of which would confirm reversal and open targets at 112.86/37 (Fibo 61.8% and 76.4% of 111.57/114.94 upleg).

Hourly Ichimoku cloud (spanned between 113.90 and 114.15) is expected to cap upside attempts and guard upper pivot at 115.00.

Res: 113.90; 114.15; 114.29; 115.00
Sup: 113.54; 113.26; 112.86; 112.37

AUD/USD

The Aussie is attempting to sustain break above key barrier at 0.7700 which capped upside attempts in past two weeks.
Yesterday’s marginal close above 0.7700 barrier and today’s extension to fresh seven-weeks high at 0.7730, could be seen as strong bullish signals.
Repeated close above 0.7700 is needed to confirm break and open way towards next strong barriers at 0.7755/75 zone (Aug/Nov 2016 congestion tops).
Strong bullish setup of daily studies supports further upside action, however, rally may show signs of stall ahead of 0.7755/75 barriers as daily RSI / slow stochastic are approaching overbought zone.
Session low at 0.7690 marks initial support, with rising daily Tenkan-sen that tracks the uptrend (currently at 0.7667), expected to ideally contain dips.

Res: 0.7730; 0.7755; 0.7775; 0.7800
Sup: 0.7690; 0.7667; 0.7635; 0.7616

 , Daily Market Outlook