The pair extends the last week’s weakness off 1.3282 high, with break below initial support at 1.3100, seen last Friday and overnight’s gap lower opening. Test of lower boundary of very strong support zone at 1.3000/1.2950, Mar/Apr lows / Fib 61.8% of 1.2622/1.3485 ascend, weakens the larger picture’s structure, with clear break below 1.2950, expected to accelerate losses towards 1.2900, figure support and 1.2875, 09 Jan 2011 / 23 Jan 2012 lows. Overextended short-term studies see potential for bounce higher, with initial barriers at 1.3030 and 1.3080, with 1.3155, 55 day EMA and double-top at 1.3180, capping the upside.

Res: 1.3030, 1.3080, 1.3100, 1.3155
Sup: 1.2952, 1.2930, 1.2900, 1.2875

Cable dipped to 1.6115, Fib 38.2% of 1.5817/1.6300 upleg, after losing last week’s range floor and 55 day EMA at 1.6160. Negative tone continues to dominate on short-term studies, with indicators on daily chart starting to point lower that increases risk of further weakness. Critical support and pivot point lies at 1.6080/1.6060 zone, with break here expected to accelerate losses. Bounce on extended hourly conditions is so far seen corrective, with previous support at 1.6160, now acting as initial resistance. Only clear break above 1.6200 handle would ease bear pressure.

Res: 1.6160, 1.6200, 1.6214, 1.6237
Sup: 1.6113, 1.6100, 1.6080, 1.6060

Short-term outlook remains negative, as the pair fully retraced recent 79.63/80.60 rally. While holding below strong barrier at 80.00, last week’s range floor and daily Ichimoku cloud base, immediate focus lies at 79.63/52, below which opens round figure support and 01 Nov 2011 high at 79.00, also near Fib 61.8% of 76.00/84.17 rally. Only lift above 80.60, 02/03 May peaks / main bear trendline off 84.08, would provide near-term relief.

Res: 80.00, 80.10, 80.39, 80.60
Sup: 79.71, 79.63, 79.52, 79.13

Extension of last week’s recovery action from 0.9041 low, with today’s gap higher opening, has resulted in break above key short-term barrier at 0.9250. This keeps the downside protected for now and turns short-term focus higher, towards next very strong resistance zone and short-term range top at 0.9300/30. Indicators on a daily chart are emerging above their midlines, while overextended short-term studies are looking for corrective pullback. Initial support at 0.9200 and last week’s closing level at 0.9180, are expected to contain dips and keep short-term bulls intact. Only loss of 55 day EMA at 0.9130 and last week’s higher platform at 0.9113, would be bearish.

Res: 0.9250, 0.9269, 0.9300, 0.9330
Sup: 0.9213, 0.9200, 0.9180, 0.9130