Daily Market Outlook: Euro Returns To 1.25 Zone

EURUSD

The Euro returns to 1.25 zone, previous highs, reinforced by descending daily 10SMA, where yesterday’s rally stalled on repeated attempt higher. Sustained break and close above here is needed to confirm bulls, which are establishing on 4-hour chart, for further recovery towards next pivotal barriers at 1.2532 and 1.2576. Daily RSI/MACD bullish divergence supports the notion. Conversely, extended congestion could be expected on repeated rejection at 1.25 resistance, with 1.24 zone marking the downside breakpoint, loss of which will be bearish.

Res: 1.2500; 1.2532; 1.2565; 1.2576
Sup: 1.2452; 1.2438; 1.2411; 1.2393





EURJPY

The pair remains supported and started fresh bull-leg, after rally from 142 base, eventually cleared previous peak at 144.20 and posted new high at 144.67. Yesterday’s long green candle signaled bullish resumption after near-term consolidative phase. Next targets lay at 145.11, Jan 2014 peak and key med-term barrier at 145.67, 27 Dec 2013 high. Corrective actions so far tested 143.65, Fibonacci 38.2% of 142.08/144.67 upleg and should not exceed 143 handle, Fibonacci 61.8%, in extended pullback.

Res: 144.00; 144.20; 144.41; 144.67
Sup: 143.65; 143.38; 143.00; 142.75




GBPUSD


Cable is gaining strength after eventual break above 1.59 handle followed yesterday’s rally from 1.5833 trough and so far reached 1.5940, Fibonacci 38.2% of 1.6180/1.5788 descend. Bullish hourly and bulls entering play on 4-hour chart, support further upside, which was signaled by yesterday’s bullish Outside Day. Also, Daily RSI/MACD bullish divergence supports further gains. Psychological 1.60 level, reinforced by daily 20SMA, offers next significant resistance, on the way to the breakpoint at 1.6020 zone, lower platform Fibonacci 61.8% retracement. Only loss of 1.5833, hourly higher base, would neutralize bulls.

Res: 1.5953; 1.6000; 1.6020; 1.6085
Sup: 1.5900; 1.5875; 1.5833; 1.5800



USDJPY

The pair consolidates fresh gains which took out previous peaks at 115.50 zone and probed above psychological 116 barrier. Pullback was so far contained at 115 zone, also mid- point of 113.84/116.09 upleg, with further easing allowed to 114.70, Fibonacci 61.8%, before fresh attempt higher. Overall bullish structure favors further upside, with near-term targets laying at 117.95, Oct 2007 high and 120.12, Fibonacci 61.8% of long-term 147.68/75.55 descend. Only loss of pivotal 114 support would put bulls on hold.

Res: 116.00; 116.21; 116.62; 117.00
Sup: 115.00; 114.62; 114.25; 113.84




AUDUSD

The pair resumes recovery off 0.8539 low after eventually taking out strong 0.8680 barrier and extending above psychological 0.87 level. Fresh bulls off 0.8589 higher low, approach 50% retracement of 0.8909/0.8539 descend and are looking for test of pivotal 0.8760 lower platform and Fibonacci 61.8% retracement, above which to confirm near-term bottom. Yesterday’s bullish Outside Day, as well as daily MACD bullish divergence, support the notion. Initial supports lay at 0.8680/65, with stronger pullback required to hold above 0.86 handle, to keep bulls in play.

Res: 0.8717; 0.8760; 0.8800; 0.8850
Sup: 0.8680; 0.8665; 0.8650; 0.8607



AUD/NZD

The pair came under pressure and resumed descend from 1.13 peaks, which was paused by 4-day consolidation, with two long-legged Doji candles. Negative near-term structure favors further downside, as fresh direction is establishing. Attempts below psychological 1.10 support to signal eventual push towards key 1.0980 higher base, for full retracement of 1.0980/1.1301 upleg. Daily indicators are attempting below their midlines and support the notion. Only break above consolidation top at 1.1170 would delay bears.

Res: 1.1088; 1.1100; 1.1150; 1.1170
Sup: 1.1050; 1.1000; 1.0980; 1.0920




XAUUSD

Spot Gold remains in near-term consolidative mode above 1131 low, after pullback from recovery high at1179, found support at 1145. Near-term studies hold positive tone for fresh push higher, with regain of pivotal 1179/82 barrier, would signal stronger recovery. Yesterday’s positive close and clear break above daily 10SMA, would be supportive elements, along with MACD daily bullish divergence.

Res: 1168; 1173; 1179; 1182
Sup: 1160; 1152; 1145; 1142