EURUSD

The Euro extends advance on Monday and holding well above 1.0705 pivot, break of which signals bullish continuation.

Fresh dollar’s weakness, triggered by President Trump’s comments, is likely to extend, as EURUSD’s technicals firmed.

The price is now holding deeply in the thickening daily cloud and looks for attack at cloud’s top at 1.0824 that also marks 50% of 1.1298/1.0339 descend and is reinforced by descending 100SMA (currently at 1.0831).

Strong negative sentiment for the US dollar is expected to further boost the Euro for final attack at 1.0872 (08 Dec spike high).

In addition, US Q4 GDP data, due later this week, are showing forecast weaker from the previous quarter’s reading that would further sour dollar’s near-term outlook, for extension of bull-leg from 1.0339 towards 1.0930 (Fibo 61.8% of 1.1298/1.0339 downmove).

Initial support lies at 1.0688 (session low/rising 5SMA), followed by ascending 10SMA/daily cloud base (1.0642/31), where extended dips should find solid support.

Res: 1.0753; 1.0824; 1.0831; 1.0872
Sup: 1.0705; 1.0688; 1.0631; 1.0603

GBPUSD

Cable penetrated into daily cloud and took out key near-term barrier at 1.2405/15 (55SMA/last week’s strong rally rejection) and extended above falling 100SMA at 1.2436. Bullish acceleration on fresh dollar’s weakness, so far met target at 1.2472 (Fibo 61.8% of 1.2772/1.1986 descend and could extend to narrowing daily cloud top (1.2538), on firm break above 1.2472 pivot. Daily close above 1.2415 levels is needed to confirm bullish continuation. The notion is supported by daily MA that turned into bullish setup and strong bullish momentum. However, hesitation at 1.2472 Fibo barrier could be anticipated, as daily Slow Stochastic is overbought. Dips should be ideally contained by broken 55SMA/daily cloud base, to keep structure intact. Otherwise, corrective dips may extend to 1.2313 pivot (daily 30SMA).

Res: 1.2472; 1.2500; 1.2538; 1.2587

Sup: 1.2455; 1.2385; 1.2333; 1.2285

USD/JPY

The pair dropped into daily cloud on Monday’s fresh bearish acceleration, after recovery attempts were capped by daily Kijun-sen line at 115.57 last week.
Penetration of the top of thickening daily cloud that underpinned broader bulls and contained previous corrective dips, generates strong bearish signal.
Focus turns towards correction lows at 112.55, violation of which will complete Failure Swing pattern for further downside.
Extension below 111.97 (Fibo 38.2% of 101.17/118.65 ascend) is needed to confirm bearish resumption towards next target, psychological 110.00 support (also 50% retracement).
Double-top at 118.65/59 continues to weigh.
Broken daily cloud top (currently at 114.10) marks solid resistance, followed by daily Tenkan-sen at 114.70 which is expected to cap extended upticks.

Res: 114.10; 114.40; 114.70; 115.37
Sup: 113.15; 112.55; 111.97; 111.00

AUDUSD

Last Friday’s probe above near-term congestion tops was so far short-lived, with long-legged Doji that was formed on Friday, signaling strong indecision.

However, the price action continues to move at the upper side of 0.7491/0.7572 congestion, with range floor being reinforced by 200SMA that marks decent support.

In addition, 20/200 Golden Cross is forming that additionally boosts strong bullish structure of daily chart studies.

While 200SMA holds, extended consolidation is expected to precede fresh leg higher that will lopk for targets at 0.7600/30 initially. Negative US dollar’s near-term outlook supports scenario.

Conversely, sustained break below 200SMA would signal recovery rally’s stall and increase downside risk.

Res: 0.7577; 0.7586; 0.7600; 0.7630
Sup: 0.7548; 0.7516; 0.7491; 0.7468

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