EUR/USD

The pair is neutral near-term mode and holding within 1.0700 zone, following yesterday’s downside rejection at 1.0641( Fibo 38.2% / daily Kijun-sen) support.

Broken daily Tenkan-sen (currently at 1.0723), below which the pair closed for two consecutive days, caps the action for now and keeps the downside vulnerable.

While the latter is holding, fresh attempts towards 1.0641 pivot could be expected, with break here to expose next strong supports at 1.0550/25 (daily cloud base / Fibo 61.8% of 1.0339/1.0827 upleg).

Alternatively, sustained break above 1.0723 would signal higher low formation and open way for retest of key near-term dynamic barrier, falling 100SMA that capped upside attempts during past week and currently lies at 1.0768.

Res: 1.0700; 1.0723; 1.0768; 1.0810
Sup: 1.0669; 1.0641; 1.0603; 1.0583

GBP/USD

Cable remains supported in the near term and extend bounce of past two days on strong downside rejection at 1.2345.

Fresh upside extension after close above first pivot at 1.2525 (daily Tenkan-sen), hit target at 1.2567 (Fibo 61.8% of 1.2704/1.2345 pullback), break of which would trigger further upside.

Daily indicators are heading north andalong with series of daily MA’s bull-crosses, support bullish scenario.

Corrective dips are expected to hold above hourly higher base at 1.2470 zone, while stronger downside risk could be expected on violation of 1.2442 pivot (daily cloud top / 100SMA).

Res: 1.2567; 1.2619; 1.2671; 1.2704
Sup: 1.2545; 1.2500; 1.2470; 1.2442

USD/JPY

The pair remains neutral in the near term and holding within 100-pips range, following failure to sustain break below key 112.00 level.

Mixed near-term studies confirm directionless mode, however, daily technicals remain bearishly aligned and keep the downside at risk.

Daily Tenkan-sen and Kijun-sen lines turned south after sideways period and signal renewed pressure.

Break below 112.00 and fresh lows at 111.60 is needed to trigger bearish acceleration that would extend towards the base of thick daily cloud at 109.91.

Congestion tops at 112.50 zone mark initial resistance ahead of descending daily Tenkan-sen which marks the upper pivot (currently at 113.25) and break here would signal stronger recovery.

Res: 112.50; 112.75; 113.25; 113.45
Sup: 111.97; 111.57; 111.34; 110.83

AUD/USD

The Aussie is in red on Thursday but holding above strong support at 0.7600 zone. Pullback from fresh high at 0.7694 was so far held by daily Tenkan-sen at 0.7600, which was seen as ideal reversal point to keep overall bulls intact.
On the other side, daily RSI that reversed from overbought territory shows more room at the downside, which may signal extended correction.
Next solid support below 0.7600 handle is offered by rising 20SMA (currently at $0.7577) and guarding plethora of strong supports between 0.7510 and 0.7490 (higher base / Fibo 38.2% / 100 SMA / and Golden Cross of 55/200SMA’s that is currently forming).
All these strongly underpin the action and should contain extended pullback from 0.7694 high.
Only firm break here would generate stronger bearish signal for deeper correction of 0.7159/0.7694 rally.
The pair is eyeing RBA’s monetary policy statement, due on Friday, for stronger signals.

Res: 0.7644; 0.7664; 0.7694; 0.7730
Sup: 0.7604; 0.7577; 0.7510; 0.7490

 

 , Daily Market Outlook