EUR/USD

Near-term action is biased higher following yesterday’s strong rally that marked the biggest one-day gains since 31 Jan.
Rally was so far capped by daily Kijun-sen at 1.0675, with corrective easing under way.
Broken Tenkan-sen now acts as initial support at 1.0634, ahead of 1.0617 (Fibo 38.2% of two-day 1.0520/1.0675 rally / 5SMA) and 1.0600 (55SMA, former strong barrier) where extended dips should find solid support).
Early downside rejection would prompt attack at next key barriers at 1.0695/1.0710 (20SMA / Fibo 61.8% of 1.0827/1.0520) with sustained break higher to signal an end of corrective phase from 1.0827.
Conversely, loss of 1.0600 handle would signal lower top at 1.0675 and turn near-term focus lower.

Res: 1.0675; 1.0695; 1.0710; 1.0755
Sup: 1.0634; 1.0617; 1.0600; 1.0580

GBP/USD

Near-term price action is moving in triangular consolidation under yesterday’s high at 1.2521 where rally was capped by 20SMA.

The pair remains overall bullish, following false break into daily cloud and subsequent quick recovery.

Consolidation is expected to hold above broken Tenkan-sen line at 1.2463 (also near yesterday’s low at 1.2452) to keep near-term bulls intact for renewed attempts above 1.2500 barrier and possible attack at 1.2550 pivot.

Otherwise, expect increasing downside risk on loss of Tenkan-sen support that could accelerate lower for attack at pivotal support zone between 1.2422 (55SMA) and 1.2411/04 (100SMA / daily cloud top).

Res: 1.2508; 1.2521; 1.2550; 1.2580
Sup: 1.2477; 1.2453; 1.2452; 1.2422

USDJPY

Long bearish candle that was left on yesterday’s extension of pullback after strong upside rejection at 114.94, heavily weighs on near-term action.
Yesterday’s close below Tenkan-sen line at 113.26 was a bearish signal, with the pair eyeing next pivot at 112.85 (Fibo 61.8% of 111.57/114.94 upleg.
Firm break here is needed to confirm reversal and trigger further weakness from lower top at 114.94.
Corrective upticks should be ideally capped at 113.80 zone (falling 30SMA/Fibo 38.2% of 114.94/113.07 downleg).
Only sustained bounce above 114.00 barrier would sideline downside risk.

Res: 113.26; 113.59; 113.80; 114.22
Sup: 113.07; 112.85; 112.37; 112.00

AUD/USD

The Aussie closed marginally below 0.7700 barrier yesterday and failed to confirm break above two-weeks congestion at first attempt.
Further easing in early Friday’s trading is still seen as correction ahead of renewed attempts higher.
However, initial signals of possible stall of strong rally from 02 Jan low at 0.7163 come as initial support (daily Tenkan-sen) turning sideways.
Rally in 2017 so far advanced nearly 8% and overextended studies on daily / weekly charts warn of stronger correction.
Also, the pair is on track for repeated weekly close in long-legged Doji candle that signals strong indecision at 0.7700 zone.
Loss of Tenkan-sen support (currently at 0.7667 would risk deeper pullback and re-focus key near-term support at 0.7600 (former consolidation range floor).
Expect increased downside risk on firm break below 0.7600 pivot.

Res: 0.7710; 0.7730; 0.7755; 0.7775
Sup: 0.7667; 0.7622; 0.7600; 0.7574

 , Daily Market Outlook