EURUSD

Monday’s strong bounce formed Bullish Engulfing pattern, signaling another failure near strong 1.0500 support zone, following massive downside rejection on 05 Dec. On the other side, last week’s failure of attempts above pivotal 1.0800 zone signaled strong upside rejection, keeping the pair within 1.05/1.08 range during the past week. Despite yesterday’s rally, daily studies remain in bearish setup, with daily Tenkan-sen (currently at 1.0688) capping for now and maintaining negative n/t structure. Yesterday’s bullish signal requires confirmation on sustained break above Tenkan-sen, for possible renewed attack at 1.08 resistance zone. However, signals of clearer direction require break out of current range. Outcome of FOMC two-day meeting that starts today, would give more clues.

Res: 1.0650; 1.0688; 1.0739; 1.0790

Sup: 1.0625; 1.0589; 1.0525; 1.0504

GBPUSD

Cable left long bullish candle on Monday, forming higher base at 1.2550 zone, reinforced by daily Kijun-sen that lays just below.

Near-term focus is shifted up and eyes strong barriers at 1.2720 (daily cloud top) and 1.2772 (06 Dec recovery top). Sustained break here would open initial barriers at 1.2800 zone (July post-Brexit fall lows) and 1.2890 (Fibo 61.8% of 1.3443/1.1997 fall) in extension.

Rising daily Tenkan-sen underpins the action (currently at 1.2636) and offers solid support.

lternative scenario requires firm break below daily Kijun-sen line (currently at 1.2536) to revive bears.

Res: 1.2698; 1.2720; 1.2772; 1.2800
Sup: 1.2658; 1.2636; 1.2600; 1.2565

USDJPY

The pair remains bullish overall, with n/t action in consolidation mode under fresh multi-month high at 116.11.

Dips from new high have so far found footstep at 114.71, keeping for now intact rising daily Tenkan-sen line that underpins bulls (currently at 114.48).

However, Monday’s bearish candle with long upper shadow warns of deeper pullback. Loss of daily Tenkan-sen is needed for initial bearish signal that could trigger further easing towards 113.10/112585 (08 /05 Dec troughs) that mark next downside triggers.

Meantime, prolonged consolidation phase could be expected while daily Tenkan-sen line is holding, with n/t focus to remain at the upside.

Sustained break above 116.00 barrier would open way towards 117.00 and 117.90 (Fibo 76.4% of 123.74/98.98 descend) in extension.

Res: 115.58; 115.80; 116.11; 117.00
Sup: 115.00; 114.71; 114.48; 114.07

AUD/USD

Near-term focus has shifted higher, following Monday’s rally from strong 0.7430 support zone and today’s fresh probe above key 0.7500 resistance zone .

Setup of daily studies is still mixed and warns of extended range-trading on repeated failure at 0.7500 area, as rally posted marginally higher high at 0.7511, ahead of easing.

Dips were so far contained at 0.7480 (Fibo 38.2% of yesterday’s rally) that is seen as ideal reversal point ahead of fresh attempts higher.

Sustained break above 0.7500 zone would face a plethora of solid resistances that starts with 200SMA at 0.7529 and break here would generate fresh bullish signals.

Conversely, slide below 0.7480 handle would soften n/t structure and shift risk towards 0.7440/30 pivots (daily Tenkan-sen / n/t congestion floor).

Res: 0.7506; 0.7511; 0.7529; 0.7556
Sup: 0.7480; 1.7460; 0.7440; 0.7410

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