Short Term Technical Analysis for Majors (07:30 GMT)

[WindsorBrokers]

EUR/USD

Trades in a near-term corrective mode after yesterday’s spike to the levels just under 1.4300 and sharp fall through 1.4000 zone, 18 July low / 200 day MA, to extend losses to 1.3970 so far. Bounce on overextended near-term conditions is under way, with initial barrier at 1.4120, 20 day MA on 4-hour chart and possible extension towards 1.4170, near Fib 38.2% of 1.4548/1.3970 decline, where a lower top is anticipated to maintain wider picture bearish tone. Below 1.3970 to focus 1.3950, with extension to key level at 1.3836 not ruled out.

Res: 1.4088, 1.4100, 1.4117, 1.4170
Sup: 1.4036, 1.4000, 1.3970, 1.3950




GBP/USD

Yesterday’s upside rejection at 1.6200 has triggered sharp fall through 1.6000/1.5980 support, extending losses to 1.5920 so far, just ahead of our next target at 1.5900. Corrective attempt has so far reached levels just above 1.6000 mark, ahead of initial barrier at 1.6060/1.6100 zone that is expected to cap. Broader outlook, however, remains bearish, with break below 200 day MA, now favoring further downside extension and possible re-test of key support at 1.5779, 12 July low.

Res: 1.6015, 1.6063, 1.6086, 1.6100
Sup: 1.5966, 1.5920, 1.5903, 1.5850





USD/JPY

Maintains near-term positive structure after yesterday’s rally broke above the one-month range and tested recent high at 77.68. Subsequent two-legged pullback has so far found support at 77.00 zone and holding above here keeps scope for fresh recovery through 77.68, to test 78.00/45 next. Loss of 77.00 handle, however, would suggest another false break higher and return back to directionless trading.

Res: 77.40, 77.70, 77.84, 78.00
Sup: 77.06, 76.71, 76.51, 76.41





USD/CHF

Trades in a narrow consolidative range after yesterday’s strong gains peaked at 0.8624. Further reversal is not ruled out at this stage, as near-term conditions are overbought. Initial support lies at 0.8540. On the upside, next target lies at 0.8750.

Res : 0.8624, 0.8700, 0.8746, 0.8800
Sup: 0.8544, 0.8500, 0.8470, 0.8437