Short Term Technical Analysis for Majors (07:00 GMT)
EUR/USD
Bears took control of the near-term outlook, as the pair failed to sustain gains above 1.2800, 200 day MA and fell sharply to 1.2735, Monday’s opening levels. The reversal, signaled by Doji candle, retraced over 50% of 1.2660/1.2828 recovery rally. Hourly indicators are deeply in the negative territory and 4h chart studies building bearish momentum that keeps near-term focus at the downside. Strong support zone lies at 1.2720/00, Fib 61.8% / tentative bull trendline off 1.2660 and daily Ichimoku cloud base, seen as next downside target. Immediate resistance stands at 1.2764, yesterday’s low, ahead of 20/55 day EMA’s at 1.2785 and key near-term barriers at 1.2800/28.
Corrective rally off 1.5826, 15 Nov low, was capped by daily Ichimoku cloud base at 1.5935, with subsequent dip to 1.5882, retracing 505 of initial 1.5826/1.5935 rally. This could be seen as corrective, as 4h studies still hold in the positive territory and hourly indicators start to point higher, after breaking below their midlines. However, regain of 1.5935 is required to confirm higher low and resume near-term recovery, towards 1.5959, Fib 38.2% and 1.6000, round figure / trendline resistance. On the downside, violation of 1.5868, Fib 61.8%, would put near-term bulls on hold.
Near-term bulls remain fully in play, as the pair resumes rally that was interrupted by 81.00/58 consolidation and breaks above our initial target at 82.00. Immediate upside target lies at 82.20, May highs and 83.32, weekly 150 day MA, to possibly open way towards psychological 83.00 barrier. However, overextended conditions on both, 1 and 4h chart, with appearance of 4h RSI /MACD bearish divergence, could limit gains in the near-term. Previous high at 81.58, offers initial support, ahead of 81.00, consolidative range floor that should contain any stronger reversal.
Bounce on failed attempt to break below important 0.9400 support, also 200 day MA, provides temporary relief, as the price jumps to 0.9456 so far. Retracement of over 61.8% of 0.9489/0.9390 fall, turns hourly structure positive, however, failure to regain previous high at 0.9489, would risk lower top and fresh weakness, as 4h indicators still hold in the negative territory. Break above 0.9489 to re-focus key near-term barriers at 0.9500/11, otherwise, near-term focus would shift back towards 0.9400.
Risk Disclaimer: Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the forex markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell forex instruments. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
All information on this website is for educational purposes only and is not intended to provide financial advice. Any statements about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold eNetGroup Inc. and any affiliated traders, writers, analysts, and developers harmless in any and all ways. All rights reserved. The use of this website and or its contents constitutes acceptance of our disclaimer.
Short Term Technical Analysis for Majors (07:00 GMT) 
Linear Mode
