EURUSD

The Euro remains in red and extends weakness on Thursday, posting fresh lows under 1.0900 handle, following Wednesday’s wild ride that moved within 400 pips. The pair ended trading on Wednesday at daily low, after rally to 1.1300 was followed by sharp pullback.
The Euro’s near-term picture remained negative after dramatic moves on Wednesday, as dollar returned to positive sentiment.
Technical returned to full bearish mode, with yesterday’s long bearish candle with huge upper shadow, heavily weighing on near-term outlook.
The pair is looking for attack at key near-term support at 1.0849 (25 Oct low), as sharp bearish acceleration has already retraced the largest part of 1.0849/1.1140 upleg (including yesterday’s spike at 1.1300).
Violation of 1.0849 pivot would open way for bearish extension towards next strong support at 1.0820 (lows of 02/10 March).
Hesitation on approach to 1.0849 could be anticipated as Slow Stochastic is deeply oversold, but no reversal signal being generated so far.
Session high marks initial resistance at 1.0952, ahead of base of thick 4-hr cloud at 1.0978 and psychological 1.1000 barrier.
Only lift above 4-hr cloud top at 1.1061would question near-term bears.

Res: 1.0952; 1.0978; 1.1000; 1.1061
Sup: 1.0886; 1.0849; 1.0820; 1.0790

GBPUSD

Cable returned to previous lows at 1.2350 zone after spiking to 1.2545 on Wednesday, but is so far unable to break below this support, which is reinforced by rising daily Tenkan-sen line.
Yesterday’s close marginally above daily Kijun-sen line (that now acts as initial support at 1.2377) did not result in more significant rally, as today’s upside attempts were so far capped at 1.2454.
This would keep the downside vulnerable for renewed attacks at 1.2350 support zone, where near-term base is forming, with sustained break lower to signal fresh bearish acceleration towards initial support at 1.2280 and possible extension to 1.2200 zone.
Otherwise, extended consolidation could be expected while 1.2350 base holds, however, firm break above n/t congestion within 1.2350 and 1.2480 would shift near-term focus higher.
Res: 1.2454; 1.2481; 1.2500; 1.2555
Sup: 1.2377; 1.2350; 1.2334; 1.2281

USDJPY
The pair extends sharp bullish acceleration (which was not affected by yesterday’s sharp fall that spiked to 101.17 low) into the fourth consecutive day and met next target at 106.65 (200SMA / 138.2% Fibonacci projection of the upleg from 102.53). Yesterday’s bullish candle with huge tail, underpins bulls, along with firm bullish setup of daily studies.
Strong bullish sentiment that was regained after Wednesday’s post-election turmoil is driving the pair towards psychological 107.00 barrier, with key short-term barrier at 107.47 (21 July high), coming in sight. Daily close above 200SMA is needed to confirm strong bullish stance.
Expanding upper Bollinger band now acts as initial support at 106.06, followed by former high at 105.51 and today’s low / broken bull channel upper boundary line at 104.85.

Res: 107.00; 107.35; 107.47; 108.00
Sup: 106.06; 105.51; 104.86; 104.62

NZDUSD
Kiwi dollar extends weakness on Thursday, after falling sharply a day earlier on post-US election turmoil. Fresh weakness broke below 50% of 0.7106/0.7401 upleg and eyes strong supports at 0.7219/12 (Fibo 61.8% / daily Kijun-sen line / 20/100 SMA’s bull-cross) break of which will confirm strong bearish stance and trigger further weakness.
Yesterday’s long red daily candle weighs on near-term structure, with dollar-positive sentiment maintain downside pressure.
Broken 10SMA offers initial resistance at 0.7269, followed by session high at 0.7305, regain of which would sideline bearish threats.
Res: 0.7269; 0.7305; 0.7337; 0.7358
Sup: 0.7234; 0.7212; 0.7176; 0.7146
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