Short Term Technical Analysis for Majors (10:00 GMT)

Short Term Technical Analysis for Majors (10:00 GMT)

Postby WindsorBrokers » Wed Mar 09, 2016 6:21 am

The Euro failed to break above strong 200SMA barrier, which was cracked on a brief extension to 1.1056 (yesterday’s high).
Quick reversal and daily close below psychological 1.10 support, left Doji candle with long upper shadow, which signaled hesitation and building selling interest.
The notion was confirmed by fresh acceleration lower that broke below hourly cloud (spanned between 1.1000 and 1.0970), threatens pivotal supports at 1.0950/46 (daily 10SMA / daily Ichimoku cloud top), violation of which will confirm reversal and expose next targets at 1.0912/01 (Fibo 61.8% of 1.0823/1.1056 upleg / last Friday’s low.
Daily Slow Stochastic has reversed from overbought zone and shows a plenty of room at the downside. Also, Death Cross pattern, formed on a cross of 20SMA over 200SMA, generated additional pressure.

Res: 1.0988; 1.1000; 1.1020; 1.1056
Sup: 1.0946; 1.0912; 1.0901; 1.0851



Double rejection at daily 30SMA confirms strong resistance at 1.4280 zone and possible stronger acceleration lower. Daily Slow Stochastic is reversing in oversold territory and signals further downside, as the pair attacks daily 20SMA support at 1.4180 and hourly Ichimoku cloud base caps at 1.42, for now.
Break below 20SMA would open Fibo 38.2% of 1.3834/1.4281 upleg at 1.4110, loss of which is needed to confirm reversal and expose psychological 1.4000 support, also Fibo 61.8% retracement.
Meantime, extended consolidation between 20 and 30SMA’s cannot be ruled out, before stronger correction starts.
Conversely, sustained break above 30SMA, will signal fresh leg higher of recovery rally from 1.3834 (29 Feb low).

Res: 1.4200; 1.4240; 1.4281; 1.4303
Sup: 1.4175; 1.4110; 1.4057; 1.4000



The pair made strong bullish close yesterday, ending day above 1.34 handle and showing strong hesitation at pivotal 200SMA support at 1.3290, which was cracked on past two-day unsuccessful attempts lower.
Falling daily 10SMA, currently at 1.3420, still acts as good barrier, despite being cracked today on brief extension to 1.3440. However, further recovery cannot be ruled out, as daily Slow Stochastic is ascending after reversal from oversold zone and shows more room at the upside. Fibonacci 38.2% retracement of 1.3857/1.3258 downleg, marks next strong resistance at 1.3487, which is expected to limit attempts above 10SMA.
Overall structure remains bearish and sees scope for renewed attack at 200SMA, below which to trigger fresh extension of bear-leg from 1.4688 (20 Jan high), towards psychological 1.3000 support.
On the upside, falling daily 20SMA at 1.3601, marks the breakpoint.

Res: 1.3420; 1.3487; 1.3558; 1.3601
Sup : 1.3364; 1.3325; 1.3290; 1.3258



Aussie bounces from session low at 0.7410, where two-day consolidation found support and is forming hourly double-bottom. Fresh recovery rally retraced over 61.8% of 0.7482/0.7408 easing, shifting near-term focus higher, as hourly studies are gaining bullish momentum. Lift above 0.7468, yesterday’s highs, is needed open way for attack at key 0.7482 barrier and resumption of larger recovery rally from 0.6825 (15 Jan low), towards next target at 0.7530, former low of 29 Mar 2015.
Strong bullish setup of daily studies favors further upside and so far ignores overbought conditions.
Alternative scenario requires reversal below near-term consolidation floor at 0.7408, to weaken near-term structure.

Res: 0.7482; 0.7493; 0.7530; 0.7650
Sup: 0.7454; 0.7436; 0.7408; 0.7391

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