The Euro steadies around 1.3000 level, after yesterday’s trip to 1.3100 barrier, when the rally stalled on approach and subsequent sharp fall brought the price to the area where it traded mostly during the past few sessions. The downside risk persists, as upside rejection shows that upper barriers are intact for now, with near-term studies sliding into negative territory and keeping the downside vulnerable. Initial supports lay at 1.2980/70, ahead of 1.2950, 24 Apr low, below which to expose 200 day MA at 1.2937. The negative structure is confirmed by daily Ichimoku cloud base that maintains bears from 1.3200 peak and limits the upside attempts.
Res: 1.3000, 1.3045, 1.3092, 1.3127
Sup: 1.2987, 1.2970, 1.2950, 1.2937
GBP/USD
Cable holds steady near fresh highs reached on yesterday’s strong rally. The pair hit 1.5480 high, with subsequent consolidation being contained at 1.5430, keeping the previous high and strong support intact for now. Positive structure sees potential for further upside, with immediate targets standing at 1.5500, psychological resistance, ahead of 1.5605, Fib 61.8% of larger 1.6380/1.4830 descend. Any violation of 1.5410 support, would signal deeper pullback, with supports laying at 1.5370/40, Fib 38.2%/50% of yesterday’s rally. Key near-term support and higher base lays at 1.5200 and only break here would have more significant impact on near-term bulls.
Res: 1.5480, 1.5500, 1.5550, 1.5605
Sup: 1.5430, 1.5410, 1.5370, 1.5340
USD/JPY
The pair came under pressure again, after BOJ’s monetary policy release, with violation of initial 98.50 support and Fib 38.2% of 95.80/99.87 rally, increasing risk of deeper pullback. The notion is supported by weakening hourly studies and loss of initial bullish momentum. Bearish extension below 98.00 handle, near 50% retracement, would be seen as initial signal of triple-top formation, as the pair failed to test psychological 100 barrier on its third attempt. Previous high of 12/03 at 96.70, is seen as breakpoint, while any bounce above 99.00 barrier, would ease bearish pressure. Weekly closing price will give more clear signals about the near-term direction, as close below 99.00 support, would confirm that bears are taking control of the near-term price action.
Res: 99.00, 99.20, 99.50, 99.74
Sup: 98.20, 98.00, 97.84, 97.35
AUD/USD
Aussie’s recovery attempt holds initial positive tone, established on a bounce off 1.0220 low and break above 1.0300 barrier. With the downside being supported by the latter and 20 day EMA holding the downside, more upside prospect is seen in the coming sessions. Improved 4h studies support the notion, however, clearance of important 1.0357 barrier and high of 19 Apr, is seen as a trigger or further recovery towards 1.0400 breakpoint and 50% retracement of 1.0581/1.0220 descend, above which to confirm near-term base and open way for stronger recovery. Conversely, sustained break below 1.0300 handle, would bring bears back in play and re-expose 1.0220 low.
Res: 1.0336, 1.0357, 1.0400, 1.0443
Sup: 1.0300, 1.0250, 1.0230, 1.0220
