EUR/USD

The Euro ticked higher after posting new, marginally lower low at 1.0525 in Asia. The pair remains in strong bearish mode for final probe below 1.0500 handle and attack at critical support at 1.0461 (2015 low).

Bearish weekly candle with long upper shadow weighs on near-term structure.

Extended consolidation is seen as likely scenario ahead of Fed’s meeting later this week that is expected to generate stronger signals.

Initial resistance lies at 1.0580 (hourly Kijun-sen), ahead of more significant barriers at 1.0628/57 (Friday’s high / Fibo 38.2% of 1.0872/1.0525downleg), with extended upticks expected to stay capped under 1.0688 (daily Tenkan-sen line).

Res: 1.0580; 1.0628; 1.0657; 1.0688
Sup: 1.0525; 1.0516; 1.0504; 1.0461

GBP/USD

Cable bounced from 1.2550 zone, where recent pullback found support and attempting to form hourly higher base.

However, the price is still holding within 1.2550/1.2618 congestion, break above which is needed to signal reversal and shift focus higher, as overall picture is bullish. Next upper triggers lay at 1.2633 (Fibo 38.2% of 1.2772/1.2547 pullback), followed by 1.2686 (Fibo 61.8%) and 1.2702 (08 Dec lower top).

However, mixed near-term studies would keep the downside at risk, while the price holds below n/t range top.

Daily Kijun- sen line (at 1.2536) underpins, guarding another significant support at 1.2500 zone 9Fibo 38.2% of 1.2081/1.2772 / trendline support), break of which will be bearish.

Res: 1.2618; 1.2633; 1.2686; 1.2702
Sup: 1.2576; 1.2547; 1.2536; 1.2500

USD/JPY

The pair remains in strong bullish setup and cracks psychological 116.00 barrier, on Monday’s fresh extension of larger rally.

Also, another strong barrier at 115.81 (Fibo 61.8% of 125.84/98.98 pullback) has been broken, with close above it needed to confirm resumption of steep uptrend from 101.17 (post-US elections spike low).

Next barriers lay at 117.00 (round-figure) and 117.90 (Fibo 76.4% of 123.74/98.98 descend).

North-heading daily Tenkan-sen continues to underpin the action (currently at 114.07) and is expected to contain stronger dips.

Broken 115.81 barrier now acts as initial support, followed by session low at 115.14 and former high at 114.81.

Res: 116.11; 117.00; 117.90; 118.50
Sup: 115.81; 115.14; 114.81; 114.07

AUD/USD

The pair is holding above strong support at 0.7410 (weekly cloud top / Friday’s low) but without clear n/t direction, as stronger indecision was signaled by long-legged weekly Doji candle.

Past two days close in red maintains downside pressure, but daily Tenkan-sen (0.7437) contains for now.

Mixed daily and neutral n/t studies support the notion.

We need to see sustained break below 0.7400 zone that will generate bearish signal for extension towards next downside pivot at 0.7368 (01 Dec trough).

Conversely, return to strong resistance zone at 0.7500 would sideline downside threats, however, firm break higher is needed to confirm bullish resumption.

Res: 0.7471; 0.7494; 0.7506; 0.7529
Sup: 0.7437; 0.7410; 0.7383; 0.7368

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