EURUSD

The Euro is holding above 1.0600 handle in early Friday, following yesterday’s spike to 1.0683 and first daily close above 1.0600 since 05 Jan.
Bullishly aligned technicals favor renewed attempts above cracked pivot at 1.0668 (Fibo 61.8% of 1.0872/1.0393), close above which is needed to confirm bullish continuation towards next targets at 1.0700/46.
Daily Kijun-sen turned south and bull-cross of Tenkan-sen/Kijun-sen lines is forming that would further support scenario.
Initial support lies at 1.0600 zone, reinforced by rising 5SMA and break here would soften near-term tone.
Close below 1.0550 (Fibo 38.2% of 1.0339/1.0683 upleg) would shift near-term focus to the downside.
US Retail Sales data, due later today, are eyed for additional signals.

Res: 1.0644; 1.0668; 1.0683; 1.0700
Sup: 1.0600; 1.0570; 1.0550; 1.0511

GBPUSD

Cable ticked lower on Friday, hovering around broken neckline of daily H&S pattern (currently at 1.2154, following yesterday’s strong upside rejection.

Subsequent fall retraced 61.8% of Wednesday’s post-Trump rally from 1.2035 and is turning near-term focus lower again.

Bearish daily studies and Thursday’s red daily candle with long upper shadow weigh on near-term market action.

Repeated close below the neckline is needed to maintain downside pressure and keep key 1.2000 support zone in focus.

The pair is on track for the second consecutive bearish weekly close that maintains negative outlook.

Daily Tenkan-sen marks pivotal resistance at 1.2233 and is expected to cap upticks.

Res: 1.2175; 1.2208; 1.2233; 1.2270
Sup: 1.2137; 1.2105; 1.2035; 1.2000

AUDUSD

The pair remains firmly bullish and spiked to one-month high at 0.7516 yesterday, but bulls show strong hesitation at the base of daily cloud/200SMA (currently at 0.7489/97) and so far unable to clearly break higher.

In addition, plethora of strong barriers lies ahead: 0.7523(14 Dec lower top); 0.7540 (daily cloud top/Fibo 61.8% of 0.7785/0.7158) and may delay bulls.

Consolidation ahead of fresh attempts higher could be anticipated, with initial support at 0.7432 (Fibo 23.6% of 0.7158/0.7516 upleg) expected to ideally contain, with extended dips seen towards pivot at 0.7380 (Fibo 38.2%).

Increased downside risk could be expected on violation of the latter.

Res: 0.7490; 0.7523; 0.7540; 0.7600
Sup: 0.7474; 0.7432; 0.7380; 0.7337

, Daily Market Outlook