After a short rally following ECB’s comments, the single currency was rejected at 1.2390 50% Fibo retracement of 1.2747/1.2042 down leg, ahead of good resistance at 1.2410/30 zone / 28 Jun Low, while the effect of the said comments are starting to fade, the pair started a 100 pips pullback ahead of 1.2280 support. Near term studies are showing a potential correction while the pair stay’s below 1.2310. Support is spotted at 1.2280/70 and 1.2240 while resistance at 1.3225 and 1.2350 are in sight.
Res: 1.2310, 1.2325, 1.2350, 1.2390
Sup: 1.2280, 1.2270, 1.2240, 1.2170
Consolidating below 1.5777, 20th Jun high, after a sharp rise from 1.5470 zone, have given the Cable the momentum to test the said highs, however ECB “What So Ever” comments may not offer support unless they put their words in act. Cable is currently testing the downside of 1.5700 ahead of 1.5665 27th Jul low, while a rise above 1.5725 maybe give a positive tone for a test of 1.5780 zone. A breake of 1.5665 might offer a negative move towards 1.5550 25th July high, a break there would open 1.5400 zone.
Res: 1.5725, 1.5740, 1.5755, 1.5777
Sup: 1.5700, 1.5665, 1.5620, 1.5590
Friday’s spike was rejected at 78.67 ahead of 78.75 resistance zone of 16th July low, price action showing a potential pull back of the downtrend if the said resistance was broken ahead of 79.15 strong resistance. Only a break below 78.30 and 78.05 would offer a continuation of the downside risk. Only the loss of 78.05 will open the path towards 77.65, 1st of Jun key barrier.
Res: 78.55, 78.75, 78.90, 79.10
Sup: 78.30, 78.05, 77.95, 77.65
Bounce off 1.0486, 27th July High, back to 1.0449 so far, a break above Friday’s barrier would open the path for more rise towards 1.0570 , 27th March high. Over bought conditions might offer a corrective action ahead of the rise while 1.0425 might offer first support ahead of 1.0400 zone. Studies are showing a mixed signals while the upside is favored.
Res: 1.0475, 1.0486, 1.0520, 1.0557
Sup: 1.0449, 1.0425, 1.0400, 1.0345