Key risk events today: US Advance GDP q/q; US Advance GDP Price Index q/q; US Unemployment Claims; US CB Leading Index m/m. (Previous analysis as well as outside sources – italics). EUR/USD: Monday responding from H4 resistance at 1.22-1.2180 (composed of the 1.22 figure, a collection of Fibonacci ratios and an AB=CD bearish formation [red … Continue reading Thursday 28th January: Technical Outlook
Despite price recently consolidating gains, the weekly timeframe shows AUD/USD has scope to reach as far north as resistance at 0.8127. In order to climb, however, daily Quasimodo resistance at 0.7784 must be conquered (shines the spotlight on another daily Quasimodo resistance at 0.7893).
Those long from daily demand at 30,310-30,637 or the H4 support zone at 30,578-30,633 (both areas were noted in Monday’s technical briefing) have likely reduced risk to breakeven, and perhaps liquidated a portion of their position.
Supply at 1.2420-1.2214 remains in focus. This, as you can probably see, is an area boasting healthy downside momentum out of its base.
The 2018 yearly opening value at 1.2004 is in the crosshairs as potential support, should sellers make an appearance this week.
The round number 1.21 and trend line support combination (taken from the high 1.2344) persuaded a short-term bullish scenario on Thursday, elevating EUR/USD to 1.2150 resistance.
