Market update on majors

EURUSD

The Euro stabilizes around 1.38 handle, where the price closed for the week, after posting fresh high at 1.3831, Fibonacci resistance. Overall tone remains positive, however, descending indicators on 4-hour chart suggest further consolidation that was signaled by Friday’s Doji. Also overbought daily studies see risk of a pause in near-term rally. Initial support lies at 1.377, consolidation floor /Fibonacci 38.2% of 1.3664/1.3831 upleg, ahead of strong 1.37 zone, previous highs / 38.2% retracement and 1.3650 higher low / 50%, where stronger dips should find a footstep. On the upside, break above 1.3831 to focus 1.3900 initially.

Res: 1.3817; 1.3837; 1.3857; 1.3900
Sup: 1.3770; 1.3750; 1.3700; 1.3650





GBPUSD

Cable trades in prolonged consolidative phase, with price action being established within 1.6254/1.6114 range, following repeated failure at key 1.6254/59 barrier. Hourly technicals are weak, while 4-hour chart indicators are losing traction, as the price moves within hourly triangular consolidation. Increased downside risk would be seen on a break below 1.6114/00 support zone, as this would also signal double-top formation on 4-hour chart and keep the upside targets on hold. Conversely, sustained break above 1.6200 handle, would shift near-term focus towards key barriers and breakpoints at 1.6254/59, above which to signal resumption of larger uptrend and focus short-term targets at 1.6300/80.

Res: 1.6221; 1.6245; 1.6254; 1.6259
Sup: 1.6168; 1.6148; 1.6114; 1.6100




USDJPY

The pair regains strength and averts immediate downside risk, as bounce off 97.00 support zone that was cracked last Friday, retraces over 50% of 98.47/96.93 downleg, on a weekly gap-higher opening. Hourly studies turned positive, however, weak tone prevails on 4-hour chart, as the price remains in near-term downtrend from 98.99 and current rally being capped by 55DMA at 97.74. Regain of 98.00 and more significant 98.47 lower top, is required to shift focus higher, otherwise, fresh lower top and extension of larger downtrend, would be likely near-term scenario. Initial support lies at 97.43, session low / 20/55DMA’s bullish crossover, while, extension below 96.93 handle would open way for full retracement of 96.55/98.99 ascend.

Res: 97.74; 98.00; 98.18; 98.47
Sup: 97.43; 96.93; 96.55; 96.00





AUDUSD

Near-term price action remains under pressure, as extension from 0.9670, where the lower top was left, broke below initial 0.9600 support. Fresh extension lower retraced 38.2% of 0.9280/0.9755 rally on a dip to 0.9571 so far, with near-term indicators sliding into negative territory. Initial targets lay at 0.9526/18, previous peak / 50% retracement, along with psychological 0.9500 support, reinforced by daily 55DMA. Break here to neutralize near-term bulls and spark stronger correction of larger 0.9280/0.9755 rally, as the upside remains capped by descending 200DMA. Corrective attempts face initial resistance at 0.9622, with 0.9670 expected to cap.

Res: 0.9622; 0.9670; 0.9700; 0.9755
Sup: 0.9571; 0.9526; 0.9500; 0.9461