USD/JPY Enters Corrective Phase; Gold Holds Positive Near-Term Tone
FinFX | Aug 28, 2014 03:51AM ET
EUR/USD
The euro regains strength in the near-term action, as corrective attempts off fresh low at 1.3149, extended to 1.3220, last Friday’s low and the first break point. Hourly studies turned positive, as the price action attempts to stabilize above 1.32 handle, with sustained break above 1.3220 barrier, also 50% retracement of 1.3295/1.3149 descend, required to improve 4-hour structure for push towards the next break point at 1.3295, 22 Aug lower top, between 50% and 61.8% of larger 1.3410/1.3149 descend. Overextended daily studies support the scenario. Conversely, failure to sustain break above 1.3200, would signal prolonged sideways trade, with downside risk in play.
Res: 1.3220; 1.3240; 1.3261; 1.3295
Sup: 1.3187; 1.3167; 1.3149; 1.310
EUR/JPY
The pair remains under pressure and extended pullback off fresh high at 137.98, after completing daily reversal pattern, to probe below 136.80, the lower border of pivotal 137.00/136.80 support zone, also 50% retracement of 135.71/137.98 rally. Hourly studies turned neutral, as the pair consolidates above 136.80 support, with yesterday’s Doji confirming near-term indecision. On the other side weak 4-hour studies maintain risk of further retracement of 135.71/137.98 upleg, with clear break below 136.80 higher base, required to confirm scenario. Extension below 136.80 to open 136.57, Fibonacci 61.8% and higher low of 12 Aug at 136.35, ahead of psychological 136 support. Corrective rallies were so far contained below 137.3, broken bear-trendline off 137.98 / 26 Aug lower top, with sustained break here, expected to ease bear pressure and re-focus the upper targets.
Res: 137.30; 137.40; 137.65; 137.98
Sup: 136.73; 136.57; 136.35; 136.00
GBP/USD
Cable is regaining traction, as bounce off 1.6534 low probes above strong 1.66 barrier. Sustained break here is required to confirm basing attempt and further improve north-heading 4-hour studies for push towards pivotal 1.6677/85, 20 Aug lower top / 200SMA and possible extension to the key near-term barrier at 1.6735 lower platform. However, overall negative tone sees current movements as corrective action and failure to clear 1.6735 barrier, would keep in play scenario of lower top formation and subsequent fresh weakness.
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Res: 1.6605; 1.6622; 1.6651; 1.6677
Sup: 1.6570; 1.6534; 1.6500; 1.6464
USD/JPY
The pair maintains overall bullish tone and enters near-term corrective phase, after fresh bulls cracked key 104.11, 04 Apr peak, the last obstacle on the way to 105.43, 02 Jan peak. Corrective easing establishes below initial 104 support, with 103.50, 22 Aug low and 103.20, Fibonacci 38.2% of 101.49/104.26 upleg, seen as next significant supports, with extended pullback to be contained above 103 zone, previous peaks and psychological support, to keep bulls in play.
Res: 104.00; 104.16; 104.26; 104.50
Sup: 103.67; 103.50; 103.20; 103.07
AUD/USD
Near-term bulls returned to play, as the pair extended rally off 0.9237 through 0.9327/42 barriers, also penetrating daily cloud base and 55SMA, now eyeing pivotal 0.9372, lower top of 06 Aug and 50% of 0.9503/0.9237 descend. Break above here is required to confirm base at 0.9237 for more significant correction of 0.9503/0.9237 descend, with 0.94 psychological barrier / 61.8% retracement and 0.9415 lower top, seen as immediate targets. Otherwise, prolonged sideways trade could be expected in the near-term, in case of failure to break 0.9372 barrier. Previous peak at 0.9349, now acts as initial support, ahead of 0.9326 higher base/ previous range tops, where pullbacks should find solid support.
Res: 0.9342; 0.9372; 0.9400; 0.9440
Sup: 0.9349; 0.9326; 0.9308; 0.9290
AUD/NZD
The pair remains in near-term consolidative mode under fresh high at 1.1183, where fresh acceleration from 1.1055 higher base peaked, en-route towards psychological 1.1200 barrier. Consolidative action is for contained at 1.1125, where near-term base has been established, with hourly studies being neutral mode. However, underlying bull-trend remains intact and sees scope for fresh attempt higher, after completion of near-term consolidative phase, which should be ideally contained at 1.1125/00 levels, to keep bullish structure on 4-hour chart intact. Break above 1.1200 to open 1.1300/19, round figure/Fibonacci 76.4% retracement of 1.1576/1.0488 descend.
Res: 1.1166; 1.1183; 1.1200; 1.1250
Sup: 1.1125; 1.1100; 1.1081; 1.1055
XAU/USD
Spot Gold maintains positive near-term tone, after bounce off fresh lows at 1272, retraced 38.2% of 1319/1272 downleg , on a rally to 1290 so far. Extension above 200SMA at 1284, signals fresh recovery action, with regain of broken bull trendline and psychological support at 1300, required to confirm formation of near-term base. Corrective pullback off 1290, found support at previous consolidation top at 1280, which keeps freshly established near-term bulls in play. Positive hourly studies are supportive, however, weak tone, which persists on larger timeframes, warns of fresh weakness, in case of failure to clearly break above 1300 barrier.
Res: 1290; 1296; 1300; 1305
Sup: 1284; 1280; 1272; 1265
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