Cable Broke Above Near-Term Range Tops
FinFX | Nov 27, 2014 04:03AM ET
EUR/USD
The Euro accelerated from 1.2440 trough and eventually broke above 1.25 barrier. Rally spiked at 1.2530, with subsequent consolidation, hovering around 1.25 handle, where the pair closed yesterday. Completion of Three White Soldiers reversal pattern and break above 1.2480, daily 10/20SMA’s bull-cross / daily Tenkan-sen line, which now underpin, sees scope further recovery towards next barrier at 1.2545, bear-trendline, drawn off 1.2884 peak, to open 1.2563, daily Kijun-sen line, ahead of breakpoint at 1.2597, 19 Nov lower top of larger descend. Near-term studies turned positive, which sidelines immediate downside risk and favors further ascend, however, daily technicals are still negative and see risk of lower top formation under 1.26 barrier and fresh weakness.
Res: 1.2530; 1.2545; 1.2563; 1.2597
Sup: 1.2480; 1.2440; 1.2400; 1.2371
EUR/JPY
Repeated Doji signals near-term directionless trading, as recovery rally from 145.57 low remains capped at 147.35 and price action entrenched within 100-pips range. Hourly studies are flat, with 4-hour technicals losing traction, which, along with daily indicators descending from overbought zone, would signal fresh weakness. Daily 10SMA at 146.77 has been cracked and close below here to signal weakness. Loss of initial support and range floor at 146.28, to increase risk of return to pivotal 145.57 support and trigger fresh extension of pullback from 149.12. Conversely, prolonged consolidative action could be expected while 146.28 support holds, which would keep possible upside attempts in play, as overall picture is bullish. Clear break above the range tops, is required to revive near-term bulls for test of 148.00 and 148.41 lower tops.
Res: 147.00; 147.19; 147.40; 147.75
Sup: 146.58; 148.28; 146.00; 145.57
GBP/USD
Cable broke above near-term range tops and cracked important 1.58 barrier, psychological level / Fibonacci 61.8% of 1.5939/1.5588 downleg / daily 20SMA. Narrow consolidation under fresh highs is under way, with positive near-term studies, supporting further upside. Formation of near-term base at 1.5590 zone, gives bullish signal, with sustained break above 1.58 handle, to confirm and expose daily Kijun-sen line at 1.5884, for possible full retracement of 1.5939/1.5588 bear-leg. Initial support lies at 1.5765, 4-hour cloud top, ahead of strong, former range tops 1.5735 support and 1.5700, daily Tenkan-sen line.
Res: 1.5833; 1.5865; 1.5884; 1.5900
Sup: 1.5776; 1.5765; 1.5735; 1.5700
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USD/JPY
Near-term structure remains weak and the pair cracked base at 117.33, following recovery rejection at 118.56 and subsequent descend. Repeated close in red suggests further weakness, which requires close below 117.33/20, previous base / daily Tenkan-sen line / daily 20SMA, to be confirmed. Fresh extension of the pullback from 118.96 peak, to look for 116.80, 4-hour cloud base, then 116.51, Fibonacci 38.2% of 112.56/118.96 ascend, below which, acceleration towards 115.44 trough, could be expected. Corrective rallies should be ideally capped under 118 barrier, just above mid-point of 118.56/117.25 downleg.
Res: 117.56; 117.75; 118.00; 118.28
Sup: 117.20; 117.00; 116.80; 116.51
AUD/USD
The pair bounces after break below key 0.8539 support, also probed below psychological 0.85 level. However, yesterday’s positive close could be a signal of stronger recovery, in case the price returns above 0.8636, daily Tenkan-sen line and 50% of 0.8794/0.8784. Further recovery and close above 0.8700, daily Kijun-sen line, to confirm false break and re-focus pivotal 0.88 barrier. Otherwise, corrective rally is expected to leave lower top, ahead of fresh weakness, as overall picture remains bearish and keeps short-term focus at the downside.
Res: 0.8636; 0.8565; 0.8700; 0.8720
Sup: 0.8561; 0.8528; 0.8511; 0.8478
AUD/NZD
The pair broke below pivotal support at 1.0931 and 200SMA 1.0911, to commence fresh bear phase. Yesterday’s long red candle confirms strong bearish stance for resumption larger downtrend, as confirmation of triple-top, supports further acceleration lower. Break below psychological 1.08 support, to open 1.0780, Fibonacci 76.4% of 1.0619/1.1301 ascend, below which there will be no serious obstacles en route the next key support at 1.0619, 10 July low. Corrective rallies should be ideally capped under 1.0930 zone, previous lows / Fibonacci 61.8% of 1.1014/1.0816 descend.
Res: 1.0892; 1.0906; 1.0930; 1.0968
Sup: 1.0840; 1.0816; 1.0800; 1.0780
XAU/USD
Spot Gold is losing traction, following repeated failures at psychological 1200 barrier, which guards pivotal 1207 high, also Fibonacci 61.8% of 1255/1131 descend, reinforced by daily 55SMA. Today’s spike to 1185, was short-lived, but signals fresh weakness ahead. Corrective action towards strong 1175 support, higher base / daily 20SMA, could be expected, before fresh attempt higher. Only sustained break below 1175, would signal top and bring near-term bears fully in play.
Res: 1197; 1200; 1204; 1207
Sup: 1190; 1185; 1179; 1175
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