Technical Outlook for Majors 20/09/2016

Technical Outlook for Majors 20/09/2016

EURUSD
The Euro extends recovery from 1.1148 (Fri/Mon lows) and emerges above narrowing daily cloud (cloud top at 1.1167 offers good support). Recovery attempts were so far limited at 1.1200 zone (Fibo 38.2% of 1.1282/1.1148 downleg), with sustained break here needed to sideline persisting downside risk and allow for stronger recovery.
Next good barriers lay at 1.1235/45 (parallel-running daily Tenkan-sen and Kijun-sen lines) and firm break here is needed to confirm recovery.
Otherwise, risk of fresh weakness will remain in play while the price holds below 102.35. Twist of daily cloud supports such scenario.

Res: 1.1212; 1.1215; 1.1231; 1.1245
Sup: 1.1167; 1.1148; 1.1122; 1.1108

eurusd-20-09

GBPUSD

Cable trades within narrow consolidation above fresh lows at 1.2992, with recovery attempts being so far limited by initial barrier at 1.3089 (Fibo 38.2% of 1.3245/1.2992 downleg). Despite bullish close, long upper shadow of yesterday’s candle signals persisting downside pressure. Renewed attempt at cracked psychological 1.3000 support, requires sustained break lower, for resumption of lager bear-leg from 1.3443, towards next strong support at 1.2864 (low of 15 Aug) and possible extension towards key s/t support (06 July post-Brexit low).
Extended recovery is expected to precede fresh leg lower, with upticks above 1.3089 barrier, expected to stay below 1.3136/40 (14 Sep former low / daily cloud base).
Res: 1.3063; 1.3089; 1.3140; 1.3158
Sup: 1.2992; 1.2972; 1.2900; 1.2864
gbpusd-20-09

USDJPY

The dollar enters the second day in red against yen. Fresh weakness posted new marginally lower low at 101.52 and holding below daily Kijun-sen line at 101.91, which kept limited downside attempts in past three days.
Near-term focus is turning towards key near-term support at 101.18 (07 Sep low), loss of which will extend the third wave (from 103.34 lower top) of five-wave move from 104.30 peak, towards its 76.4% Fibonacci expansion at 100.83, possibly to key 100.00 support (psychological support / 100% Fibonacci expansion).
The structure remains pressured by descending daily cloud, base of which currently lies at 102.30 and reinforced by daily Tenkan-sen line, marking solid resistance. Initial barriers are Kijun-sen line at 101.91 and session high at 102.02.
Res: 101.91; 102.02; 102.30; 102.65
Sup: 101.52; 101.40; 101.18; 100.83
usdjpy-20-09

AUDUSD
The pair continues to trend higher on recovery rally from 0.7440, underpinned by rising daily cloud base. Today’s fresh strength probes again above cracked 0.7551 barrier (Fibo 38.2% of 0.7730/0.7440 downleg), following yesterday’s spike to 0.7571 and subsequent pullback that closed well below 0.7551 barrier.
Daily close above here is needed to confirm recovery for attack at another strong resistance points at 0.7585/94 (converging daily Tenkan-sen / Kijun-sen lines), which guard the upper breakpoints at 0.7619 (Fibo 61.8% of 0.7730/0.7440) and top of thickening daily cloud at 0.7629.
Ideal scenario sees recovery capped under daily Tenkan-sen line and fresh leg lower commencing from here. Overall bearish technicals support the notion.

Res: 0.7571; 0.7585; 0.7594; 0.7619
Sup: 0.7528; 0.7505; 0.7490; 0.7476

audusd-20-09, Daily Market Outlook