Short Term Technical Analysis for Majors (07:00 GMT)
Moves in a third wave from last Friday’s low at 1.2287, after yesterday’s strong reversal from day’s high at 1.2541, found support at 1.2410, 50% retracement of 1.2287/1.2541 upleg. Fresh strength regained 1.2500 handle and briefly broke above main bear trendline, drawn off 1.3282 peak, increasing possibilities for stronger gains, as hourly indicators moved into positive territory. Clearance of 1.2541 barrier and close above here, will confirm near-term bullish structure for fresh extension towards 1.2600 and breakpoint zone at 1.2623/41. Broken bear trendline, along with yesterday’s intraday high at 1.2470, offers initial support, while key near-term support lies at 1.2400 zone and break here would be bearish.
Break above near-term range top, last Friday’s spike high and Fib 38.2% of 1.5715/1.5267 descend at 1.5437, now signals fresh strength ahead. As hourly studies regained momentum, potential is seen for test of significant barriers at 1.5500/25 clearance of which to allow for stronger recovery and possibly expose 1.5600, previous strong support, now reverted to resistance. Yesterday’s higher low at 1.5320, along with 1.5300, round figure support and long-term bull trendline off 1.3500, 2009 low, offer key near-term support, with break here to bring bears back in play for test of 1.5267/33.
Maintains positive tone off last Friday’s low at 77.65, as the near-term price action breaks above 200 day MA at 78.65 and main bear trendline at 78.70. Fresh strength approaches the next strong barrier at 79.00, retracing so far over 50% of 80.13/77.65 downleg, with break here to signal stronger correction of broader downtrend from 84.17, yearly high. Toppish hourly studies may delay fresh strength, with previous resistance at 78.60 zone, now offering support and required to contain dips. However, only loss of 78.00, would be a signal that bears are back in play.
The pair extended its near-term corrective pullback through 0.9637/00 support zone, to dip to 0.9575 so far, where a temporary footstep was found. Bounce from here was short-lived, as gains were capped on approach to 0.9700, our next barrier and subsequent slide below 0.9600, now increase risk of further easing. Loss of 0.9575 to open 0.9500, next strong support, for test, ahead of possible further easing towards 0.9400 and strong support at 0.9366, 21 May higher low.
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