EURUSD
The Euro consolidates above fresh low at 1.1201, posted yesterday, on extension of pullback from 1.1712, 24 Aug peak. The third consecutive daily close in red, formed reversal pattern that suggests further downside. Immediate targets lay at 1.1153, Fibonacci 61.8% of 1.0807/1.1712 rally, reinforced by rising daily 20SMA, currently at 1.1142 and daily cloud top at 1.1136 that together mark strong support zone. However, daily slow Stochastic is entering oversold territory and along with expected end-of-the-week profit taking, could spark stronger correction. Initial barrier lies at 1.1278, daily Kijun-sen, ahead of 200SMA at 1.1309, below which corrective rallies should be ideally capped, to maintain negative near-term bias, as the pair is poised for bearish weekly close. Only extension and close above broken bear-trendline at 1.1388, would sideline immediate downside risk.
Res: 1.1396; 1.1451; 1.1500; 1.1551
Sup: 1.1230; 1.1201; 1.1153; 1.1136
GBPUSD
Cable extended steep descend yesterday and closed in red for the third consecutive day. Fresh weakness met target at 1.5368, 200SMA, where temporary footstep was found. Near-term consolidation is expected to precede final push towards the next target at 1.5327, 08 July low, to mark full retracement of 1.5327/1.5816 rally. Bearish structure of daily technicals favors scenario, as oversold daily Stochastic, sees room for extension towards 1.5327 target. The pair is poised for negative weekly close that risks extended weakness in the short-time. Daily 100SMA marks initial resistance at 1.5475, ahead of yesterday
Linear Mode
