FX Technical Notes – EURUSD, GBPUSD, AUDUSD – 3rd January
EUR/USD Technical Notes – Bearish Outside Day And Break Below Prior Support
The EUR/USD currency pair has formed a bearish outside day after a failure to take out the previous swing high during trading on Wednesday. Price has subsequently moved as low as 1.3123 in the Asian trading session after breaking under 1.3158 support; the 1.3123 area is aligned with the 15/12/12 daily high and is a level we highlighted in yesterday’s euro/dollar update.
Any sustained downside could bring the ascending trend line into focus if the selling intensifies. Alternatively, a break back above previous support around 1.3160 may see a reversion back into the recent trading range. A daily close above 1.3170 would have us questioning the downside momentum - but the bearish outside day could be hinting at further near to mid term downside, all else being equal.
GBP/USD Technical Analysis – Initial Rejection After Break Above Resistance
Cable has formed a bearish pinbar candle after the break above 1.6300 could not find a daily basis close above this key technical area. Nonetheless, GBP/USD still posted a marginal gain for the day. Price has subsequently found an initial element of support at the 1.6203 area “double top” candle highs during the Asian session, as per the daily chart below. We also note that price has put in a higher low around 1.6065, as the last bounce from 1.6300 has not been as pronounced as the three previous rejections. 1.6300 remains as a key technical level going forward.
AUD/USD Technical Analysis – Price Near 1.0500 and 61.8% Retrace Levels
The AUD/USD currency pair experienced an extended upside move yesterday, covering almost 150 pips, with the Aussie dollar outperforming many of its currency major counterparts – as commodities gained following the Fiscal Cliff compromise deal. The AUD/USD has held onto most of its post fiscal cliff gains in Asian trading - which is in contrast to the GBP/USD and EUR/USD pairs shown above. The 1.0500 psychological/round number area is seen as key in the near term and the 61.8% Fibonacci retrace is closely aligned. Any break higher brings the 1.0600 area as a technical point of interest.
Forex Technical Analysis Report, Outlook, Forecast, FX Price Action Daily Chart Analysis 3/1/12