EURUSD
The Euro is at the back foot in early Monday’s trading and so far unable to clearly break above daily cloud top at 1.1167, which was cracked on extension to session high at 1.1181.
Friday’s close in red, with long upper shadow on daily candle and close below daily cloud top, signaled false break higher on post-US data spike to 1.1250 (Friday’s high) and renewed selling pressure.
Near-term price action holds within the range for the third consecutive day, with downside risk towards breakpoint at 1.1123/20 (31 Aug correction low / 200SMA) being in play. Session / last Friday’s low at 1.1150, so far guards 1.1120 support zone, however, near-term studies are weak, keeping focus at the downside.
Daily technicals are in mixed setup and the pair may spend some time within 1.1120/1.1250 congestion, before clear break out of the range defines fresh near-term direction.
Res: 1.1181; 1.1250; 1.1272; 1.1300
Sup: 1.1150; 1.1120; 1.1108; 1.1069

GBPUSD
The pound hit fresh one-month high on strong bullish acceleration after upbeat UK Services PMI data. Today’s release comes as extension of stronger-than-expected economic data from UK that boosted the pound diminished fears of widely expected strong negative impact on Brexit vote.
Cable enters the fourth consecutive day of rallies and starts the week in strong bullish sentiment, after past three weeks closed positively.
Fresh strength cracked pivotal resistance at 1.3369 (03 Aug high) and signal further extension of recovery rally from 1.2864 (15 Aug trough).
Daily studies are turning into bullish mode and favor further upside action towards next breakpoints at 1.3478/1.3531 (highs of 15 July / 29 June), which mark tops of consolidation phase after post-Brexit sharp fall.
The pair is looking for penetration into daily Ichimoku cloud (spanned between 1.3540 and 1.3905) that marks next strong resistance zone.
Session lows that formed hourly higher base at 1.3278, mark initial support, ahead of Friday’s low at 1.3242 and rising daily Tenkan-sen line at 1.3215, where extended corrective dips should be ideally contained.
Res: 1.3400; 1.3450; 1.3478; 1.3531
Sup: 1.3326; 1.3278; 1.3242; 1.3215

USDJPY

The pair pulls back after failure to retest Friday’s peak at 104.30, as today’s rally stalled at 104.11, remaining capped by daily cloud base at 104.00 zone. The move is so far seen as correction of two-week recovery from 99.52 (16 Aug low), with strong bullish close on Friday, as well as two consecutive bullish weekly candles, generating positive signals for further extension higher. Penetration into daily cloud and break above 104.43 (Fibo 61.8% of 107.47/99.52 descend), is needed to confirm bullish resumption.
The notion is supported by bullish daily studies, with multiple bull-crosses (10/20 & 10/30SMA’s), as well as daily Tenkan-sen / Kijun-sen bull-crosses, formed on daily chart.
The pullback was signaled by Slow Stochastic reversal from overbought territory and could be also seen as hesitation at the base of daily Ichimoku cloud (spanned between 104.00 and 105.20).
Friday’s low at 102.78, reinforced by daily 55SMA, offers initial support, with extended dips to be ideally contained at 102.47 (Fibo 38.2% of 99.52/104.30 recovery leg).
Only sustained break below 102.00 support zone would sideline near-term bulls and signal deeper correction.

Res: 104.11; 104.30; 104.43; 105.20
Sup: 102.78; 102.47; 102.00; 101.49

AUDUSD
Aussie holds under Friday’s recovery peak at 0.7613, posted after three consecutive bullish days of recovery from 0.7488 (31 Aug correction low).
Daily Tenkan-sen line at 0.7589, marks still valid support, as upside attempts on Friday and today, did not manage to clearly break higher yet. Break here and above 0.7623 (daily Kijun-sen line) is required to confirm recovery resumption towards 0.7655 (Fibo 61.8% of 0.7758/0.7488 downleg) and 0.7690 (26 Aug spike high).
Corrective easing should be ideally contained at 0.7560 zone, with extension towards Friday’s low at 0.7534 allowed. Any break lower would risk retest of daily cloud top at 0.7505 and key near-term support at 0.7488.

Res: 0.7604; 0.7613; 0.7655; 0.7690
Sup: 0.7560; 0.7534; 0.7502; 0.7488

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