EURUSD
The Euro started week positively and bounced above 1.06 barrier, following ten straight days in red that hit fresh nearly one-year low at 1.0567 on Friday.
The pair remains widely offered and mild recovery attempts are seen ahead of final attack at key supports at 1.0519 and 1.0461 (Dec / Mar 2015 lows).
Hourly Ichimoku cloud (spanned between 1.0633 and 1.0667) marks initial barrier that so far caped rallies (despite brief penetration into cloud).
Upticks should be ideally limited by hourly cloud, before strong bears resume. However, risk of extended correction exists, as stronger bounce on pre-holiday profit-taking cannot be ruled out. The notion finds support in oversold daily studies, but without clearer reversal signals for now.
Sustained break above hourly cloud would signal extended upticks that may stretch towards 1.0740 / 66 (Fibo 23.6% of 1.1298/1.0567 fall / falling 10 SMA). Only rally above 1.0849 (former low of 25 Oct / Fibo 38.2% retracement) would generate stronger bullish signal.

Res: 1.0648; 1.0667; 1.0700; 1.0740
Sup: 1.0567; 1.0519; 1.0500; 1.0461

GBPUSD

Cable spiked to 1.2500 high after break above overnight’s consolidation range and daily Kijun-sen barrier triggered sharp acceleration higher. Near-term outlook has changed, as earlier bears that met support at 1.2300 were sidelined in favor of fresh rallies. The upper trigger at 1.2486 (daily Tenkan-sen line) was cracked on today’s rally that so far retraced slightly over 50% of 1.2671/1.2300 downleg. Daily close above Tenkan-sen line is needed to confirm reversal and open next strong barriers at 1.2530 (Fibo 61.8% / base of falling daily cloud, which maintained recent downmove.
Immediate support lies at 1.2450, ahead of 1.2525 (Fibo 38.2% of today’s 1.2310/1.2497 rally), while return below 1.2400 handle would weaken near-term structure.
Res: 1.2500; 1.2530; 1.2584; 1.2600
Sup: 1.2450; 1.2525; 1.2400; 1.2376

USDJPY
The pair is in narrow consolidation under fresh multi-month high at 111.16, posted on brief probe above round-figure barrier at 111.00 earlier today. The sentiment remains firmly bullish and eyes immediate target at 111.36 (50% retracement of 123.74/98.98, Nov 2015 / June 2016 descend), followed by 112.12 (weekly cloud base).
Daily indicators continue to head north, despite being deeply in overbought territory, signaling room for further upside.
On the other side, today’s trading was so far shaped in Doji and close in Doji candlestick would be seen as initial signal of steep ascend running out of steam. However, firmer signals of easing require reversal of daily RSI and Slow Stochastic from overbought zone and violation of 110.00/109.78 supports (psychological level / Friday’s low) to validate scenario.

Res: 111.00; 111.36; 111.87; 112.12
Sup: 110.45; 110.00; 109.78; 109.32

AUDUSD
The Aussie returned to weekly cloud, base of which was penetrated earlier today, when the pair posted new nearly 5-month low at 0.7308.
Three consecutive long bearish candles of last week and weekly close below 0.7387 (Fibo 61.8% of 0.7146 / 0.7776), weigh on near-term structure, as fresh weakness came ticks ahead of psychological 0.7300 support (also Fib 76.4% retracement).
On the other side, daily RSI is reversing from oversold territory, which could signal extended bounce, as daily studies are deeply oversold. However, more bullish signals are needed to confirm rally. Regain of levels above 0.7400 handle (Friday’s high / Fibo 38.2% of 0.7579/0.7308 downleg) would signal correction that may accelerate towards 0.7500 /13 (last Thursday’s high / 200SMA).
Meantime, prolonged consolidation could be expected while the price holds below 0.7400 barrier, with near-term sentiment to remain negative.

Res: 0.7387; 0.7410; 0.7475; 0.7500
Sup: 0.7336; 0.7308; 0.7283; 0.7250

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