EUR/USD

The pair continues to be driven by fundamentals, as the latest news from Italy, triggered sharp sell-off. Today’s slide has completely retraced short-term corrective rally from 1.3607, 01 Nov low that was capped at 1.3850, Fibonacci level. This turns near-term structure deeply in the negative territory and keeps the downside vulnerable for further losses. Immediate target lies at 1.3565, 11 Oct low / Fib 61.8% of 1.3145/1.4246 ascend, while MACD on daily chart, breaking below the signal line and approaching the centerline, suggesting broader weakness ahead, with 1.3427, 13 Feb low, coming in focus. However, overextended near-term studies, signal corrective action, with immediate barriers at 1.3655/80, while upside is seen capped under 1.3750 zone, for now.

Res: 1.3655, 1.3680, 1.3700, 1.3723
Sup: 1.3578, 1.3565, 1.3523, 1.3500

GBP/USD

Weakens the short-term structure after today’s sharp fall, sparked by negative economic data from UK, broke through strong supports at 1.6000 and 1.5950, extending losses to 1.5929 so far. Further weakness and possible re-visit of key short-term supports at 1.5900/1.5875 is seen favored, as 4-hour studies are breaking below their midlines, with break below 1.5875 to be very bearish. Corrective bounce on oversold hourly/4-hour conditions, should be capped below 1.6030, to maintain near-term bearish tone.

Res: 1.5900, 1.5950, 1.5978, 1.6000
Sup: 1.5929, 1.5900, 1.5890, 1.5875

USD/JPY

Remains under pressure after yesterday’s sharp fall through key near-term barriers at 78.00 and 77.75 extended losses to test 77.50, Fib 50% of post-intervention 75.56/79.52 rally. The downside remains vulnerable, as near-studies are in negative territory, however, temporary base would be found at 77.50 zone, as oversold hourly conditions bring some buying interest. On the upside, 78.00 zone, also 20 day SMA, is capping for now and only break here to improve the near-term structure.

Res: 77.75, 77.85, 78.00, 78.24
Sup: 77.53, 77.26, 77.00, 76.67

USD/CHF

Continues to travel north, after corrective reversal from 0.9066 high was contained by 20 day SMA at 0.8920. The pair approaches 0.9066 barrier, clearance of which to open way for fresh upleg of the broader rally from 0.8566, 27 Oct low. Upside targets lie at 0.9081, 20 Oct and 0.9120, 11 Oct highs. 20 day SMA at 0.8975, underpins the latest advance. Key supports lie at 0.8920, today’s low and 0.8910, bull trendline support off 0.8566 low.

Res: 0.9066, 0.9081, 0.9100, 0.9120
Sup: 0.9022, 0.9000, 0.8955, 0.8920