EURUSD

The Euro is holding around 1.0600 handle after weak start of the week. The single currency was dragged by weaker Sterling and repeated failure at 1.0668 Fibo barrier, but is so far holding above first pivot at 1.0597 (rising 5SMA). Falling 55SMA caps for now today’s action at 1.0634. Weakening near-term studies keep the pair under pressure, with firm break below 1.0600, expected to trigger fresh acceleration towards 1.0557 (rising 10SMA). However, daily studies are bullish and see current movements as correction ahead of fresh attempts higher. Formation of daily Tenkan-sen/Kijun-sen bull cross underpins, with extended dips expected to find ground above rising daily Tenkan-sen at 1.0536. Conversely, firm break below 1.0500 would confirm lower top and signal fresh downside.

Res: 1.0634; 1.0668; 1.0683; 1.0705
Sup: 1.0597; 1.0577; 1.0536; 1.0500

GBPUSD

Cable opened with some 200-pips gap-lower on Monday, on renewed fears of hard Brexit.

The pair dipped below early October’s flash crash lows and completed 1.2035/1.2315 corrective phase.

Today’s fall turns focus lower as daily techs are now in full bearish setup.

Initial target lies at 1.1928 (Fibo 138.2% projection), ahead of 1.1852 (161.8% projection), with stronger acceleration seen extending towards 1.1755 (200% projection), possibly to 1.1585 (261.8% projection).

Bounce from fresh low was so far capped at 1.2050, with limited recovery attempts expected to ideally hold below 1.2100 handle.

Daily close below 1.2000 pivot is needed to confirm bearish continuation.

Markets are awaiting UK PM Theresa May’s speech on Tuesday for stronger signals of hard Brexit.

Res: 1.2050; 1.2100; 1.2132; 1.2180
Sup: 1.1986; 1.1928; 1.1862; 1.1800

USD/JPY

The pair remains in red and probes below cracked 114.22 support (Fibo 76.4% of 112.85/118.65 upleg).

Double-top at 118.65/59 continues to weigh, with additional pressure coming on strong bearish close of last week and formation of daily Tenkan-sen / Kijun-sen bear cross.

Fresh bearish acceleration could extend to 112.85 (05 Dec trough), with daily close below 114.22 required to confirm bearish stance.

Thick hourly cloud (spanned between 114.65 and 115.30) offers strong resistance and extended upticks are expected to hold below 115.30 (cloud top).

Res: 114.22; 114.65; 115.06; 115.30
Sup: 113.60; 113.06; 112.85; 112.04

AUDUSD

The pair eases from fresh high at 0.7516, posted last Thursday, following repeated failure to firmly break above pivots at 0.7490/96 (daily cloud base / converged 100/200 SMA’s), which guards

another strong barriers at 0.7523/40 (14 Dec high / daily cloud top).

Risk of deeper pullback is rising, as daily RSI is turning south just under o/b border line.

Initial support at 0.7447 (last Friday’s low) is holding for now and guarding pivots at 0.7433 (Fibo 23.6% of 0.7158/0.7516 upleg) and 0.7414 (55SMA).

Break here would signal stronger correction, with loss of 0.7381 (Fibo 38.2% / rising 10SMA) needed to confirm.

Extended dips should be contained above 0.7329 (30SMA) to keep overall bulls in play.

Conversely, early downside rejection above 0.7433 would signal fresh attacks at strong 0.7490/0.7540 resistance zone.

Res: 0.7490; 0.7502; 0.7523; 0.7540
Sup: 0.7447; 0.7433; 0.7381; 0.7329

 

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