MNI US Morning FX Technical Analysis

By Les Castell

Click below for today's MNI US Morning FX Technical Analysis Report -

http://tinyurl.com/jz5y37x

EURO-DOLLAR TECHS: Rally On Hold While Unable To Sustain $1.1740-$1.1745 Break

*RES 4: $1.1839 Equality rise from $1.1575 to $1.1527-$1.1791

*RES 3: $1.1791/98 Jul 9 high, 1% volatility band

*RES 2: $1.1751 Jul 23 high

*RES 1: $1.1728 Hourly recovery high Jul 23

*PRICE: $1.1694 @0755GMT 

*SUP 1: $1.1645/55 Hourly congestion Jul 19-20

*SUP 2: $1.1626 Jul 20 low

*SUP 3: $1.1613 Jul 13 low

*SUP 4: $1.1564/75 1% volatility band, Jul 20 low

*COMMENTARY* The lower 1% volatility band came under pressure last Thursday

before launching into a correction of losses seen since the Jul 9 high at

$1.1791. This reached $1.1751 yesterday just through the 76.4% Fibo retrace

level at $1.1740, and the last prominent peak at $1.1745. Will need to see a

maintained rally through here, before thoughts can turn to $1.1791 again and

perhaps $1.1839-$1.1852. Nearest support now from between $1.1655-$1.1613.

CABLE TECHS: Recovers After Challenge To 6 Week Bear Channel Base

*RES 4: $1.3269 Jul 17 high

*RES 3: $1.3214/17 76.4% Fibo of $1.3293-$1.2958, Jul 16 low

*RES 2: $1.3159/65 Jul 23 high, 61.8% Fibo of $1.3293-$1.2958

*RES 1: $1.3140 Hourly resistance

*PRICE: $1.3109 @0805GMT

*SUP 1: $1.3071 Intraday low

*SUP 2: $1.3050 Initial recovery high Jul 19, now support

*SUP 3: $1.2995 Jul 20 low

*SUP 4: $1.2958/65 Jul 19 low, 6 week bear channel base

*COMMENTARY* Last Thursday saw the base of the 6 week bear channel come under

pressure, a slight dip below, before rallying strongly on Friday. The recovery

aims to test resistance from $1.3165 next, any higher and the $1.3214-$1.3217

area comes back into view. As a consequence, support moves up accordingly.

Today's low of $1.3071 and then the  initial Jul 19 high at $1.3050. A loss of

the latter would concern again.

DOLLAR-YEN TECHS: Pullback So Far Holds Above Key Y110.65 Level

*RES 4: Y112.63 Jul 20 high

*RES 3: Y112.25/35 Hourly congestion Jul 19-20

*RES 2: Y112.05 Jul 19 low, now resistance

*RES 1: Y111.55/70 Jul 23 high, hourly high Jul 20

*PRICE: Y111.17 @0814GMT

*SUP 1: Y110.90 Hourly support

*SUP 2: Y110.65/75 8 week support line, 50% Fibo, Jul 23 low 

*SUP 3: Y110.28 Jul 4 low

*SUP 4: Y110.05 61.8% Fibo of Y108.11-Y113.18

*COMMENTARY* Friday saw the pullback continue, after peaking at Y113.18 the day

before. Monday saw support from between Y111.14-Y110.96 give way, a low of

Y110.75, this protecting the next key support from Y110.65, a 50% Fibo retrace

level and the 8 week rising support line. The subsequent bounce through

Y111.30-Y111.35 has Y111.55-Y111.70 as resistance to any further progression. In

the interim, Y110.90 now acts as support against a fresh move lower.

EURO-YEN TECHS: Lower 1% Volatility Band Protects Y129.26-Y129.20 Support

*RES 4: Y131.21 Jul 20 high

*RES 3: Y130.88 Jul 18 low, now resistance

*RES 2: Y130.60 Hourly base Jul 20

*RES 1: Y130.30/45 Hourly resistance

*PRICE: Y129.97 @0840GMT

*SUP 1: Y129.67 1% volatility band

*SUP 2: Y129.26 76.4% Fibo of Y128.42-Y131.99

*SUP 3: Y129.20 2 month daily rising support line

*SUP 4: Y128.91 Former 2018 resistance line, now support

*COMMENTARY* Having broken above key Y131.38-Y131.40 resistance, the rally was

frustrated by the upper 1% volatility band at Y131.99 last Tuesday. The

subsequent fall has now broken below initial support from Y130.42 and the 50%

Fibo retrace level at Y130.20. Now looking to the lower 1% volatility band at

Y129.67 today, for protection against a deeper Y129.26-Y129.20 fall. Meanwhile,

resistance from between Y130.30-Y130.60 is the bar to any recovery potential.

EURO-STERLING TECHS: Stg0.8907-Stg0.8890 Provides Near Term Support

*RES 4: Stg0.9013 Nov 15 high

*RES 3: Stg0.8968/73 Mar 7 high, 3 month bull channel, 1% vol

*RES 2: Stg0.8958 Jul 20 high 

*RES 1: Stg0.8940/45 Hourly resistance

*PRICE: Stg0.8913 @0848GMT

*SUP 1: Stg0.8907 Former 10 month resistance line, now support

*SUP 2: Stg0.8890/99 Jul 29, Jul 9 highs, now support

*SUP 3: Stg0.8866/73 Jul 13 high, Jul 17 low

*SUP 4: Stg0.8850 Congestion area Jun 28-Jul 17

*COMMENTARY* Last week's break above the 9 month bear channel top at Stg0.8908

has seen a rally towards next key resistance from the Stg0.8968-Stg0.8973

region. This the Mar 7 high, the current level of the 3 month bull channel top

projection and the upper 1% volatility band. While capped into here, look for

support from between Stg0.8907-Stg0.8890. Loss of the latter would caution now

and open up deeper corrective potential.

AUSSIE TECHS: $0.7360-$0.7343 Support After Inability To Break $0.7443-45

*RES 4: $0.7484/93 Jul 9-10 highs, 50% Fibo of $0.7677-$0.7310

*RES 3: $0.7467 1% volatility band

*RES 2: $0.7443/45 Ju1 16, Jul 19 highs, 76.4% $0.7484-$0.7318

*RES 1: $0.7410/20 Hourly resistance

*PRICE: $0.7378 @0855GMT 

*SUP 1: $0.7360 Hourly congestion Jul 19-Jul 20

*SUP 2: $0.7343 Jul 18 low

*SUP 3: $0.7310/19 Jul 2, Jul 3, Jul 20 lows, 1% vol band

*SUP 4: $0.7245 2% volatility band

*COMMENTARY* Still trying to find a base from within the $0.7319-$0.7310 area.

The latest fall held around the lower 1% volatility band last Friday. The

subsequent bounce has seen us once again reaching towards $0.7443-$0.7445

resistance. The latter a 76.4% Fibo retrace of losses from the the Jul 9-10

highs at $0.7484. Higher and the upper 1% band at $0.7467 and then that $0.7484

level prohibit a $0.7493-$0.7515 challenge. Support between $0.7360-$0.7343.

DOLLAR-CANADA TECHS: Decline Still Held By $1.3114-$1.3110 Support

*RES 4: $1.3290 Jul 19-Jul 20 highs

*RES 3: $1.3246 Initial pullback Jul 20, now resistance

*RES 2: $1.3227 Hourly base Jul 19, now resistance

*RES 1: $1.3190/00 Hourly resistance

*PRICE: $1.3171 @0904GMT

*SUP 1: $1.3110/14 Jul 16, 17, 20, and 23 lows

*SUP 2: $1.3065/67 Jul 11 low, Jun 5 high

*SUP 3: $1.3058 50% Fibo of $1.2729-$1.3387

*SUP 4: $1.3045 1% volatility band

*COMMENTARY* Last week's rally was constrained by $1.3290, the upper 1%

volatility band at the time, falling shy of a test to the next key resistance

level, the 76.4% Fibo retrace at $1.3311. This of the $1.3387-$1.3065 fall

between Jun 27 and Jul 11. While capped here, the risk will be for a look at

$1.3114-$1.3110 support. The latter the protection against another $1.3065

decline and perhaps $1.3058-$1.3045. Resistance from $1.3190-$1.3200.

GOLD TECHS: $1238.0 The Initial Bar To Recovery Potential

*RES 4: $1266.0 Jul 9 high

*RES 3: $1253.1 76.4% Fibo of $1266.0-$1211.4

*RES 2: $1245.7 Jul 16 high

*RES 1: $1238.0 Jul 3 low, now resistance

*PRICE: $1224.5 @0907GMT

*SUP 1: $1216.9 Hourly support

*SUP 2: $1211.4 Jul 19 low

*SUP 3: $1204.8 Jul 10 2017 low

*SUP 4: $1195.0 Mar 10 2017 low

*COMMENTARY* Last week slipped below support from the 61.8% Fibo retrace level

at $1215.7 and posted a low of $1211.4, before staging a near term recovery.

This meets first resistance of note from the Jul 3 low at $1238.0. Back above

here would allow a further $1245.7 rise, with the 76.4% Fibo retrace level at

$1253.1 a stiffer test above. Meanwhile, support rises to $1216.9, loss would

caution again, $1204.8 the next support to watch below $1211.4.

--MNI London Bureau;tel: +44 207-862-7495; email: les.castell@marketnews.com

[TOPICS: MTABLE]