EURUSD

The Euro rallied on Tuesday, after Monday’s action was contained at 1.0600 support zone, but ended in Doji, signaling indecision. Fresh bulls are attacking the lower side of strong resistance zone between 1.0668 (Fibo 61.8% of 1.0872/1.0339 downleg) that includes 1.0683 (last Friday’s high) and 1.0705 (Fibo 38.2% of larger 1.1298/1.0339 descend). We need to see sustained break above 1.0700 zone to confirm bullish continuation that may extend towards 1.0794 (daily cloud base). Bullish setup of daily Tenkan-sen/Kijun-sen lines and daily MA’s (10;20;30) supports scenario, with broken 55SMA offering initial support at 1.0630. Only return below 1.0600 support zone and violation of rising Tenkan-sen (currently at 1.0567) would sideline bulls and risk stronger easing.

Res: 1.0683; 1.0705; 1.0746; 1.0794

Sup: 1.0630; 1.0595; 1.0567; 1.0540

GBPUSD

Cable bounced strongly in early Tuesday, in profit-taking action of Monday’s significant fall. Fresh bullish acceleration took out the first pivot at 1.2111 (Fibo 38.2% of 1.2315/1.1986) and is eyeing next significant barrier, broken neckline of daily H&S pattern at 1.2150. The pound is awaiting the key event today, speech of UK PM Theresa May, for more details about divorce of Britain from the EU. According to firmly bearish daily studies that favor selling upticks scenario, current rally could be seen as positioning for fresh push lower. Rally should be ideally capped by broken H&S neckline, with possible extension higher to remain under next pivotal zone at 1.2190/1.2208 (Friday’s closing level/Fibo 61.8% and daily Tenkan-sen line), before bears retake control. However, risk of filling Monday’s gap and further recovery extension cannot be ruled out, as most of news has been already priced in and May’s speech may not trigger stronger shockwaves. Such scenario requires sustained break above 1.2200 zone, to neutralize persisting downside risk and signal further recovery extension that may stretch towards breakpoint at 1.2315 (12 Jan spike high). Otherwise, while upticks remain limited, renewed attempts towards key 1.2000 support zone could be anticipated.

Res: 1.2133; 1.2150; 1.2190; 1.2208
Sup: 1.2111; 1.2083; 1.2042; 1.2015

USDJPY

Today’s fresh bearish acceleration cracked daily 55SMA support at 113.22 and is pressuring next target at 112.85 (05 Dec trough). Double-top at 118.65/59 continues to weigh on market for extension of bear-cycle through 112.85 towards next strong supports at 111.97 (Fibo 38.2% of 101.17/118.65 rally) and daily cloud top at 111.56. Bear-cross of south-heading daily Tenkan-sen/Kijun-sen lines maintains bearish pressure. Broken Fibo 76.4% support now offers good resistance at 114.22 (also near session low) that should ideally cap corrective actions. Extended upticks, however, should be limited by falling daily Tenkan-sen (currently at 115.26).

Res: 113.60; 114.22; 114.52; 115.26

Sup: 112.85; 111.97; 111.56; 111.34

AUDUSD

The Aussie accelerated up today and cracked daily cloud top at 0.7540 (the upper boundary of strong 0.7490/0.7540 resistance zone), after the price was congested under cloud base in past two days, unable to firmly penetrate into cloud.

The action generates strong bullish signal for fresh extension higher that requires daily close above the cloud top (also Fibo 61.8% of 0.7785/0.7158 descend).

Broken 200SMA and daily cloud base at 0.7497/90, now act as strong supports that should keep the downside protected.

Only return below 0.7447 (past two-day congestion floor) would signal failure of the first attempt through 0.7490/0.7540 zone and extended correction.

Res: 0.7546; 0.7579; 0.7600; 0.7630
Sup: 0.7497; 0.7490; 0.7447; 0.7408

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