EURUSD

The Euro rallies for the second day, on bounce from strong support at 1.0519 (Dec 2015), tested on recent weakness. The first trigger at 1.0660 zone (22 Nov lower top / falling daily Tenkan-sen) was broken on today’s extension to 1.0684 high. The pair eyes next barrier at 1.0700 (psychological barrier / Fibo 23.6% of post-US elections 1.1298/1.0519 fall), break of which could trigger extension towards 1.0800 zone.
Daily RSI turned up after reversal from oversold zone, supporting extended correction scenario. In addition, weekly long-legged Doji suggests that larger bears may be losing traction, as profit-taking and positioning ahead of the year-end may further boost the pair.
We look for sustained break above 1.0700 to open way towards next trigger at 1.0815 (Fibo 38.2% of 1.1298/ 1.0519 fall).
Hourly trough at 1.0640 offers immediate support, followed by 1.0620 (Fibo 38.2% of 1.0519/1.0684 recovery leg, with extended dips expected to hold above 1.0600 handle to keep near-term bulls intact.

Res: 1.0684; 1.0700; 1.0758; 1.0815
Sup: 1.0640; 1.0620; 1.0600; 1.0580

GBPUSD

Cable trades in the daily cloud, which was penetrated on Friday’s rally. Fresh strength today probed above strong barrier at 1.2510 (former multiple upside rejections) but gains were so far capped at 1.2529 (Fibo 61.8% of 1.2671/1.2300 downleg), failing to sustain initial attempt above 1.2510. Broken daily Tenkan-sen / cloud base at 1.2414, supports today’s action, however, daily studies are still mixed.
Minimum requirement is seen on daily close above 1.2510, which will keep alive hopes of fresh recovery, with sustained break above 1.2529 to confirm bullish near-term stance.
Otherwise, return below daily Tenkan-sen would soften near-term structure and shift risk lower.
Res: 1.2510; 1.2529; 1.2590; 1.2671
Sup: 1.2414; 1.2376; 1.2358; 1.2300

USDJPY
The pair extended pullback from fresh high at 113.88, posted on Friday and dipped to 111.34 low, where rising daily Tenkan-sen contained for now. Stronger correction of uninterrupted three-week rally after US elections could be anticipated, as the dollar is strongly overbought. Reversing daily RSI and Slow Stochastic support scenario, which requires close below daily Tenkan-sen line for fresh bearish signal.
Next support lies at 110.88 (Fibo 23.6% of 101.17/113.88 rally), clear break of which would trigger bearish acceleration towards psychological 110.00 support .
Bounce from 111.34 was so far capped by thick hourly cloud that weighs on near-term structure.
Alternative scenario requires bounce and close above 113.00 barrier to signal higher low and shift focus towards 113.88 peak.
Res: 112.61; 112.91; 113.28; 113.88
Sup: 111.72; 111.34; 110.88; 110.00

AUDUSD
Extended recovery from 0.7308 (21 Nov low) cracked important barrier at 0.7487 (Fibo 38.2% of 0.7776/0.7308 fall) on Monday, as the pair rallied last week after strong downside rejection below weekly Ichimoku cloud. Sustained break above 0.7487 hurdle is needed to generate bullish signal for extension towards plethora of resistances, consisting of daily MA’s, with strong barrier, 200SMA, laying at 0.7519, break of which would signal further recovery.
Failure to clear 0.7487/0.7519 barrier would be initial signal of recovery stall, as daily studies are bearish.
Broken Tenkan-se marks initial support at 0.7443, followed by 0.7408 (weekly cloud top) violation of which would weaken near-term structure.
Res: 0.7491; 0.7519; 0.7542; 0.7566
Sup: 0.7443; 0.7408; 0.7378; 0.7351

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