EUR/USD

The Euro eases from highs at 1.0770 zone, where upside attempts in past two days were capped.

Yesterday’s close in red gives initial indications of recovery rally running out of steam and subsequent correction.

Dips will look for strong support at 1.0675 (daily Tenkan-sen) which should ideally contain to keep overall bulls intact.

Close below 1.0675 would generate stronger bearish signal for extended pullback towards 1.0595 (20SMA) and 1.0560 pivot (daily cloud base / Kijun-sen line).

Overall bullish structure is still keeping focus at the upside and continuation of bull-leg from 1.0339 (in case of shallow correction) would look for upper targets at 1.0821 (falling 100SMA) and 1.0872 (08 Dec spike high).

Res: 1.0736; 1.0773; 1.0821; 1.0872
Sup: 1.0710; 1.0675; 1.0595; 1.0560

GBP/USD

Cable remains capped by descending daily cloud top, with yesterday’s action being shaped in Hanging Man candle that gives strong indication of reversal, along with strongly overbought Slow Stochastic.

Firmer reversal signals require acceleration below triggers at 1.2426 (daily cloud base) and 1.2410 (55SMA / Fibo 23.6% of 1.1986/1.2542), with loss of the latter to confirm triple top for fresh bearish acceleration towards next supports at 1.2368 (23 Jan low) and 1.2329 (Fibo 38.2%).

Alternative scenario needs sustained break above daily cloud to signal fresh extension of recovery rally from 1.1986 (16 Jan fresh multi-year low).

Res: 1.2518; 1.2542; 1.2587; 1.2671
Sup: 1.2436; 1.2426; 1.2410; 1.2368

USD/JPY

Yesterday’s bounce from strong supports at 112.50, where near-term base has formed, was capped by daily Tenkan-sen (114.05) that continues to limit today’s action.

Bearish setup of daily technical studies keeps focus at the downside for renewed attempts at 112.50 support zone.

Violation of the latter would trigger fresh acceleration towards 111.97 (Fibo 38.2% of 101.17/118.65 rally) and expose psychological 110.00 support.

Daily Tenkan-sen and daily cloud top offer strong resistances at 114.05/55 zone and only sustained break here would sideline persisting downside risk.

Upper breakpoint lies at 115.60 (19 Jan lower top, reinforced by daily Kijun-sen), with break here to confirm double-bottom and signal stronger bullish acceleration.

Res: 113.76; 114.05; 114.55; 115.27
Sup: 113.36; 112.88; 112.50; 111.97

AUD/USD

The Aussie eases after yesterday’s Doji that confirmed strong hesitation of attempts to eventually resume uptrend from 0.7160 base that was congested in past few days.

Today’s fresh bearish acceleration is putting under pressure strong supports at 0.7498/92 (daily cloud top / 200SMA), violation of which would generate stronger reversal signal.

Daily RSI is turning south after touching overbought zone boundary several times, signaling fresh downside.

Sustained break below 200SMA would signal stronger retracement of 0.7160/0.7607 rally and expose its Fibo 38.2% level at 0.7437 initially, with extension towards pivot at 0.7383 (daily cloud base, reinforced by Kijun-sen line) not ruled out.

Only sustained break above 0.7600 zone would neutralize current downside threats.

Res: 0.7527; 0.7550; 0.7607; 0.7630
Sup: 0.7492; 0.7456; 0.7437; 0.7409

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