Short Term Technical Analysis for Majors (07:45 GMT)

[WindsorBrokers]

EUR/USD

Remains under pressure after suffering heavy losses that fully erased the latest upleg from 1.3800 to 1.4246. Initial optimism about steps agreed on EU summit to tackle Eurozone debt problem is now fading. Loss of initial support at 1.3800 is looking for further weakness towards 1.3700 and key short-term support at 1.3655, higher platform. Hourly and 4-hour studies are below midlines, with RSI deeply in oversold territory. Break below daily Ichimoku cloud confirms near-term bearish structure. Initial resistances lie at 1.3800/30, with hourly 20 day SMA at 1.3875, maintaining bears.

Res: 1.3800, 1.3830, 1.3870, 1.3900
Sup: 1.3740, 1.3700, 1.3655, 1.3565





GBP/USD

Weakens the near-term structure after yesterday’s strong rally posted marginally fresh high at 1.6164. Failure to sustain gains triggered fresh weakness that brings psychological support at 1.6000 in focus. However, wider picture’s positive outlook is still intact, while initial support at 1.5900 holds, but weakening 4-hour studies see risk of fresh extension below 1.6000 handle to expose strong support at 1.5964, yesterday’s low and possible test of key downside levels at 1.5900/1.5850, below which would be bearish. Only regain of 1.6100 improves the near-term tone for fresh attack at 1.6151/64 highs.

Res: 1.6050, 1.6091, 1.6100, 1.6135
Sup: 1.5990, 1.5964, 1.5900, 1.5850




USD/JPY

Near-term price action consolidates around 78.00 handle, following yesterday’s strong rally on Bank of Japan’s intervention and subsequent corrective pullback finding ground at 78.00 zone. Hourly studies are in positive territory, moving sideways, as the pair trades within narrow range. Lift above 79.00, overnight’s high, to signal fresh strength and retest of yesterday’s high at 79.52, above which to focus our next targets at 80.00/23. On the downside, 78.00/77.65, need to stay intact, to maintain near-term positive structure.

Res: 78.34, 79.00, 79.52, 80.00
Sup: 78.00, 77.75, 77.65, 77.50





USD/CHF

Continues to travel north, after gains were initially capped at 0.8737 and subsequent pullback found support at 0.8671, just above strong support at 0.8650. Fresh strength through 0.8800 barrier is approaching significant resistances at 0.8857/80, above which to expose 0.8900, bear-trendline drawn off 0.9313 high. Near-term studies are positive, but hourly RSI already in overbought zone, suggests corrective pullback, ahead of fresh strength. Initial supports lie at 0.8785/60 and 0.8737. Only break below 0.8700 would soften the near-term tone.

Res: 0.8833, 0.8857, 0.8880, 0.8900
Sup: 0.8785, 08760, 0.8737, 0.8700