EURUSD

The Euro is pressuring strong support at 1.0641 (Wednesday’s low/Fibo 38.2% of 1.0339/1.0827 rally/daily Kijun-sen), following double rejection at 1.0700 zone, where 20SMA repeatedly capped recovery attempts. As the dollar remains supported by yesterday’s announcement from US president Trump about ambitious tax reform play, the single currency is expected to remain under strong pressure in the near term. Firm break below 1.0641 pivot would generate strong bearish signal for fresh acceleration lower. Immediate support lies at 1.0603 (55SMA), ahead of near-term targets at 1.0550 /25 (daily cloud base/Fibo 61.8% retracement). Alternatively, sustained bounce above 20SMA (currently at 1.0706) would sideline immediate downside risk and re-expose falling 100SMA (currently at 1.0762) that so far capped recovery leg from 1.0339.

Res: 1.0666; 1.0706; 1.0730; 1.0762

Sup: 1.0619; 1.0603; 1.0583; 1.0550

GBP/USD

Quick pullback from 1.2580, yesterday’s strong rally peak, sidelined strong upside potential and shifted near-term focus lower.

The pair dipped to 1.2470 so far, where rising 20SMA offered support. However, downside remains at risk, as near-term technicals are weakening and bearish momentum building on daily chart.

Extension towards key support, daily cloud (spanned between 1.2400 and 1.2442) would further weaken the structure and risk return to Tuesday’s spike low at 1.2345.

Daily Tenkan-sen is again acting as resistance and marks strong barrier at 1.2525. Only firm break above here would revive hopes of fresh attempts at 1.2567/80 upper pivots (Fibo 61.8% of 1.2704/1.2345 / Wednesday’s spike high).

Res: 1.2500; 1.2525; 1.2567; 1.2580
Sup: 1.2470; 1.2442; 1.2400; 1.2345

USDJPY

The pair extends Thursday’s strong bullish acceleration on Friday and is eventually firmly above daily Tenkan-sen, former pivotal barrier.

Near-term risk is shifted towards the upside, following repeated rejections at 111.50, where near-term base has formed.

Fresh rally approaches pivotal barrier at 113.91 (Fibo 61.8% of 115.36/111.57 downleg), break of which would expose daily Kijun-sen at 114.55).

Corrective pullback on overbought hourly studies should be contained at 112.70 zone (broken Tenkan-sen / 50% of 111.61/113.84 rally).

Res: 113.91; 114.55; 114.93; 115.36
Sup: 113.31; 113.00; 112.70; 112.46

AUD/USD

The pair trades within narrowing consolidation range between fresh high at 0.7694 and strong support at 0.7600 zone.

Near-term price action was so far supported by daily Tenkan-sen that turned north after sideways phase, with strong bullish setup of daily MA’s, still keeping upside bias.

However, fresh dollar’s strength on Trump’s tax plan talks, so far did not stronger affect the pair’s near-term action, but caution is required.

Stronger downside risk could be expected on firm break below 0.7600 handle.

Res: 0.7664; 0.7694; 0.7730; 0.7750
Sup: 0.7617; 0.7600; 0.7584; 0.7510

 

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