Short Term Technical Analysis for Majors (07:00 GMT)
The euro extended its near-term gains off 1.2267 low, after digesting yesterday’s ECB’s data. Bullish momentum pushed the pair to the levels close to the next resistance zone at 1.2600 and 1.2623, 28 May high / Fib 61.8% of 1.2823/1.2267 descend, with clear break here to spark more significant recovery. On the downside, 1.2541/00 offers immediate support, ahead of more significant 1.2441, yesterday’s higher low / 50% retracement, loss of which would weaken the structure.
Yesterday’s regain and brief break above 1.5500 barrier, keeps the near-term bulls off 1.5267, last Friday’s low, in play, with immediate target at 1.5525, 31 May high. Corrective pullback on overbought hourly conditions faces initial and strong support at 1.5440 zone, where previous range high and 55 day EMA lies, ahead of 1.5400 zone that is expected to contain dips and keep near-term bulls in play. Loss of 1.5400, however, would be spark for fresh weakness and test of strong support zone at 1.5320/00.
Continues to trend higher after clearance of very significant barriers at 78.60, 200 day MA / main bear trendline and 79.00, 18 May low. Break above the latter now sees potential for stronger corrective action and possible retest of the next strong resistance zone at 80.00. Minor support lies at 79.20 zone, ahead of 79.00, with today’s close above here, required to keep near-term bulls in play.
As expected, the dollar extended its near-term corrective action against the Swiss Franc, after failure to regain 0.9700 barrier, sparked sell-off through previous low at 0.9675, also 50% of 0.9366/0.9769 rally. Dips so far reached 0.9538, just ahead of our next target at 0.9527, Fib 61.8% and 0.9500, figure support. Bounce on oversold hourly conditions, faces immediate barriers at 0.9675 and 0.9600, however, only break above 0.9650 would prevent the pair from further sliding. As the price broke below main bull trendline on the daily chart and studies started to point lower, further retracement should not be ruled of, with break below 0.9500 handle to sideline short-term bulls.
Disclaimer: Although the administrators and moderators of DigitalCashPalace.com will attempt to keep all objectionable messages off this site, it is impossible for us to review all messages. All messages express the views of the author. DigitalCashPalace does neither support, endorse nor vouch any programs and/or opportunities discussed here. We simply provide a place for discussion.
The owners of DigitalCashPalace.com reserve the right to remove, edit, move or close any content item for any reason.
Forex Forum • Forex Brokers • Binary Options Brokers• ECN Forex Brokers • Forex Bonus