The risk on mode, established last Friday, continues to drive the bloc currency higher, on a bounce from 1.2160 zone double bottom. As important 1.2300 barrier has been cracked, though the price unable to hold gains due to overbought hourly conditions, corrective pullback is expected to precede fresh push higher. Initial support at 1.2270/60 zone, should ideally contain reversal, however, further easing towards 1.2240 area, 50% / 55 day EMA, is not ruled out. Indicators on 4h chart are attempting above the midlines and keep the upside in focus, but break above 1.2300 barrier, also 55 day EMA that turns sideways, is required to confirm and open way towards 1.2335, 10 July high and 1.2366, 05 July low / Fib 38.2% of 1.2691/1.2161 descend, to confirm near-term double bottom and trigger stronger recovery. The pair awaits ZEW releases from EU and Germany that are due later today and Bernanke’s testimony, key event of the day.
Res: 1.2300, 1.2311, 1.2335, 1.2366
Sup: 1.2270, 1.2260, 1.2243, 1.2226
Extends its three-day strong rally off 1.5400 base, as clearance of important 1.5600 barrier accelerated gains through 1.5630, Fib 61.8% of 1.5776/1.5392 downleg, to briefly break above bear-trendline at 1.5655 and hit 1.5677 so far. Hourly studies are toppish, with RSI emerging of overbought zone, as the price moves lower on corrective pullback. Dips should not exceed 1.5600 handle, where yesterday’s intraday high, Fib 38.2% of 1.5521/1.5677 upleg and 55 day EMA lie, for fresh push higher and test of another significant hurdles at 1.5700/21.
Res: 1.5677, 1.5700, 1.5721, 1.5776
Sup: 1.5620, 1.5600, 1.5592, 1.5576
The pair’s clear break below key 79.00 support zone, confirms negative short-term structure, as initial support at 78.80 has been taken out and losses approached the next significant level at 78.60. Bounce higher is seen corrective, as initial barrier at 79.00, previous support, reinforced by descending 55 day EMA, caps for now. Hourly studies, despite some movements higher, hold in the negative territory, with more negative tone seen on 4h chart. Downside extension through 78.60 would open way towards 78.00 initially, with test of key short-term support at 77.65, seen on a break. Only regain of 79.30/50 zone, would put bears on hold.
Res: 79.00, 79.12, 79.28, 79.38
Sup: 78.80, 78.67, 78.60, 78.00
The pair remains in a near-term negative mode, extending reversal off 0.9871, 13 July high and approaching important support at 0.9740. Dips were contained at 0.9755, 55 day EMA, as the price undergoes the fourth, corrective wave that should ideally been capped under 0.9800, with the fifth-one expected to stretch towards 0.9700 zone, Fib 38.2% of 0.9461/0.9871 upleg, before bulls reassert. Larger picture’s uptrend, however, remains intact and keeps focus at the upside.
Res: 0.9785, 0.9800, 0.9832, 0.9862
Sup: 0.9765, 0.9736, 0.9714, 0.9700