Technical Outlook for Majors 04/10/2016

Technical Outlook for Majors 04/10/2016

EURUSD
The Euro fell sharply on Tuesday, surging through daily Ichimoku cloud that offered support during the past few sessions, despite being cracked on several attempts lower. Today’s bearish acceleration probed briefly below cloud base at 1.1167, challenging strong support zone, consisting of daily cloud base, bull-trendline drawn off 1.0950 / 200SMA that lay at 1.1160.
With daily studies entering full bearish setup, break below 1.1167/60 support will spark further weakness and look for retest of 1.1122 breakpoint (lows of 31 Aug / 21 Sep that formed short-term higher base).
Consolidation above new lows is expected to precede fresh push lower, as near-term studies are oversold.
Broken daily cloud top at 1.1209 is expected to cap extended upticks.

Res: 1.1193; 1.1209; 1.1223; 1.1242
Sup: 1.1160; 1.1138; 1.1122; 1.1062

eurusd-04-10

GBPUSD

Pound accelerated sharply lower after brief hesitation ahead of critical support at 1.2795 (06 July post-Brexit low), which was eventually taken out. The pair hit fresh 31-year low at 1.2754, with strong negative sentiment triggered by loss of 1.2795, expected to spark further weakness.
There are no significant supports until 1.2515 zone (lows of June 1985, also Fibonacci 100 expansion of the wave C from 1.3055 (29 Sep lower top), with interim supports at 1.2725 and 1.2647 (FE 61.8% and 76.4%) respectively.
Daily close below 1.2795 is needed to confirm strong bearish stance.
Corrective actions could be anticipated on oversold conditions of all larger timeframes, however, no bullish signals seen being generated so far.
Former post-Brexit lows at 1.2795/1.2864 are now reverted to resistances, followed by former near-term base at 1.2913 and psychological 1.3000 barrier.
Res: 1.2795; 1.2864; 1.2913; 1.3000
Sup: 1.2725; 1.2700; 1.2647; 1.2570

gbpusd-04-10

USDJPY

The dollar extends strength against Japanese yen for the sixth consecutive day, with fresh bullish acceleration taking out strong resistances between 101.85 and 102.17 (bear-trendline off 30 May peak / daily cloud base / daily Kijun-sen line).
Violation of daily cloud base that capped descend from 104.30 for one month, is expected to generate strong bullish signal for further recovery from 100.00 base.
Fresh rally eyes immediate barrier at 102.68 (Fibo 61.8% of 104.30/100.05) with attack at daily cloud top at 103.22, not ruled out.
Daily MA’s are turning into bullish setup and along with expanding 20d Bollinger Bands, support scenario.
Daily close within the cloud is minimum requirement to signal further upside, while close above 102.68 (Fibo 61.8% of 104.30/100.05), will confirm and expose daily cloud top.
Corrective dips are expected on oversold near-term studies, with broken cloud / bear-trendline offering immediate support and session low, also Fibo 38.2% of entire 100.05/102.48 recovery at 101.55, expected to contain extended dips.

Res: 102.48; 102.67; 103.04; 103.22
Sup: 102.09; 101.85; 101.55; 100.98

usdjpy-04-10

AUDUSD
The Aussie dollar pulls back from fresh three-day recovery high at 0.7688, signaling hesitation on approach to strong barrier at 0.7708 (29 Sep high of larger recovery leg from 0.7440). Overall structure is firmly bullish and supports final push to 0.7708, break of which will open key short-term resistances at 0.7730 and 0.7758 (peaks of 08 Sep and 11 Aug).
Current pullback is seen as consolidation, which was contained by rising daily Tenkan-sen line at 0.7648, also near Fibo 38.2% of 0.7588/0.7688 upleg.
Only firm break below 0.7648 will sideline fresh upside attempts for stronger correction of 0.7588/0.7688 bull-leg.
Res: 0.7676; 0.7688; 0.7708; 0.7730
Sup: 0.7648; 0.7626; 0.7612; 0.7588

audusd-04-10, Daily Market Outlook