EUR/USD

Yesterday’s long red candle weighs on market, as fresh weakness after rejections at 1.0770 zone broke below daily Tenkan-sen support at1.0680 (now reverted to resistance).

Thursday’s low at 1.0656 (also Fibo 61.8% of 1.0587/1.0773 upleg) is under pressure, as today’s consolidation was capped at 1.0700 zone.

Scope is seen for extension towards next strong support at 1.0607 (Fibo 38.2% of 1.0339/1.0773) reinforced by 20SMA, with break here to accelerate towards 1.0560 (daily cloud base / Kijun-sen).

Initial resistances lay at 1.0680/1.0700, with extended upticks expected to stay under 1.0725.

Res: 1.0680; 1.0700; 1.0725; 1.0742
Sup: 1.0656; 1.0607; 1.0586; 1.0560

GBP/USD

Cable extends pullback from yesterday’s fresh recovery high at 1.2671(last traded in mid-Dec), where bullish acceleration was rejected.

Daily Slow Stochastic is reversing from overbought territory and would generate stronger bearish signal for deeper correction.

The pair approaches initial support at 1.2510 (Fibo 23.6% of 1.1986/1.2671 ascend), ahead of daily cloud top at 1.2488. Cloud is thinning (currently spanned between 1.2426 and 1.2488) and break below cannot be ruled out.

Extended pullback would look for next pivot at 1.2410 (Fibo 38.2% of 1.1986/1.2671).

Today’s close in red is needed to generate additional reversal signal.

Res: 1.2610; 1.2671; 1.2726; 1.2772
Sup: 1.2510; 1.2488; 1.2426; 1.2410

USD/JPY

The pair extends bounce from strong supports at 112.50 zone, where near-term base is forming.
Fresh bullish acceleration cracked first upper pivot at 115.13 (daily cloud top) and eyes next trigger at 115.55 (daily Kijun-sen line).
Immediate downside risk has been sidelined and near-term focus is turning higher.
Sustained break above the top of thickening daily cloud and Kijun-sen line (that also marks 50% of 118.59/112.50 pullback) is needed to confirm reversal and higher base at 112.50, for further retracement of 118.59/112.50 correction.
Failure to emerge above the cloud would signal recovery stall, however, risk is expected to remain shifted up while daily Tenkan-sen (114.05) holds.

Res: 115.13; 115.55; 116.30; 116.85
Sup: 113.37; 114.05; 113.60; 113.03

AUD/USD

The pair continues to move lower after rally showed signals of stall but is still holding above key supports at 0.7493/89 (100 / 200 SMA’s).

Near-term studies turned bearish and keep the downside under pressure, as break below initial trigger at 0.7535 (daily Tenkan-sen) generated negative signal.

Daily indicators turned south and support negative scenario.

Firm break below 100/200SMA’s is needed for stronger bearish signal and extension towards next strong support at 0.7467 (top of thickening daily cloud).

The pair is on track for the first bearish weekly close after one month that would add on growing bearish pressure.

Res: 0.7542; 0.7550; 0.7583; 0.7607
Sup: 0.7489; 0.7467; 0.7437; 0.7397

 , Daily Market Outlook