EUR/USD

The Euro remains in red on Wednesday and pressures pivotal support at 1.0641 (Fibo 38.2% of 1.0339/1.0827 upleg / 30SMA).

Yesterday’s break and close below 20SMA generated bearish signal for further downside, with break below 1.0641 needed to confirm bearish extension of pullback from 1.0827 (02 Feb peak).

towards next strong supports at 1.0550 (daily cloud top) and 1.0525 (Fibo 61.8% retracement).

Broken 20SMA (1.0700) now acts as resistance together with daily Tenkan-sen (1.0723) which is expected to cap upticks.

No events in today’s calendar during European session suggest that technicals and politics would be Euro’s main driver.

Res: 1.0689; 1.0700; 1.0723; 1.0773
Sup: 1.0641; 1.0600; 1.0550; 1.0525

GBPUSD

Cable is trading around 1.2500 handle in early Wednesday following Tuesday’s spike to 1.2345 support, where fall was contained by daily Kijun-sen. Subsequent sharp recovery confirmed short-lived break below thin daily cloud (spanned between 1.2388 and 1.2426), as yesterday’s strong downside rejection that left long-tailed daily candle that now underpins for fresh upside action. Corrective easing from yesterday’s high at 1.2544 should stay above daily cloud to keep fresh near-term bulls in play. Cracked daily Tenkan-sen (currently at 1.2525) is still acting as significant resistance and firm break above is to trigger fresh acceleration higher. Conversely, repeated violation of daily cloud would signal fresh weakness.

Res: 1.2500; 1.2525; 1.2544; 1.2567

Sup: 1.2473; 1.2426; 1.2388; 1.2345

USD/JPY

Bounce from new lows at 111.61/57 and yesterday’s close above 112.00 handle, prevented the pair from the second daily close below 112.00 pivot and sidelined immediate downside threats for extended consolidation.

Recovery attempts show signals of fading, with overall structure being negative and keeping the downside at risk.

Sustained break below 112.00 would trigger fresh bearish acceleration that may extend towards strong supports at 110.30/109.91 (ascending 100SMA / daily cloud base).

Daily Tenkan-sen marks key near-term barrier at 113.47 and only firm break here would neutralize downside risk.

Res: 112.50; 112.75; 113.00; 113.47
Sup: 111.97; 111.57; 111.34; 110.83

AUD/USD

Pullback from fresh highs at 0.7694 found footstep at 0.7600 support zone, where rising 10SMA contained pullback for now.
Correction should ideally end here to keep intact larger bull-channel from 0.7163 (02 Jan low), for fresh extension higher.
However, slow stochastic that reversed from overbought territory shows more room at the downside.
Extended correction would face rising 20SMA (currently at 0.7570) that offers significant support and guards lower breakpoints at 0.7510/89 zone (former consolidation floor / 100/200 SMA’s / Fibo 38.2% of 0.7159/0.7694 ascend.
Weak near-term studies keep the downside at risk, with stronger bounce above 0.7660, needed to sideline n/t bears and re-focus initial barriers at 0.7694.

Res: 0.7640; 0.7660; 0.7694; 0.7730
Sup: 0.7604; 0.7570; 0.7510; 0.7489

 

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