The Euro remains stable, as Asian session trading showed consolidation of last Friday’s strong rally and weekly close above 1.2800 barrier. Positive sentiment, backed by last week’s Euro supportive data, sees potential for further bullish action, however, caution is required, as lower timeframes studies are overbought and the price approaches very strong resistance zone at 1.2825/50, where 21/22 May peaks / 200 day MA and bear trendline off 1.3485, 2012 high, lie. Some corrective action cannot be ruled out at this point, with dips into initial 1.2700 support area, Fib 38.2% of 1.2500/1.2813 upleg, reinforced by 55 day EMA, seen as likely scenario. Only break below 1.2630/20 zone, previous range top / trendline support / Fib 61.8%, would sideline bulls and allow for stronger pullback.

Res: 1.2800, 1.2813, 1.2823, 1.2838
Sup: 1.2779, 1.2751, 1.2739, 1.2700


The pair trades in a corrective/consolidative mode at the beginning of the week. Last Friday’s surge through psychological 1.6000 barrier and close above the latter, opens prospect for further extension higher, with 1.6060, 02 Apr high / 09 May low and Fib 76.4% of 1.6300/1.5267, seen as next upside target. However, corrective action, already underway, is seen preceding fresh rally. Dips were contained at 1.5990, Fib 38.2% of 1.5921/1.6033 upleg / 07 Sep high / 20 day EMA, during the Asian session, but near-term indicators, still in downmove on hourly and emerging from overbought zone on 4h chart, see scope for further retracement. Next supports lie at 1.5930 and more significant 1.5900 zone, psychological support / 50% retracement, loss of which would delay bulls.

Res: 1.6000, 1.6017, 1.6033, 1.6050
Sup: 1.5989, 1.5965, 1.5930, 1.5900


The pair has lost ground, as last Friday’s repeated upside rejection at important 79.00, triggered reversal that accelerated losses on dollar negative US data. Loss of the upper boundary of strong 78.20/00 base and dip to 78.00, sees more negative impact in the pair’s near-term outlook. Bounce off 78.00, on oversold hourly studies, is seen corrective, as lower timeframes indicators maintain bearish tone and daily ones moved into negative territory. Unless regain of 78.60/80 barriers is seen, immediate focus remains at the downside, with break below 78.00 to expose 77.65, 01 June low and possibly trigger fresh phase lower, as part of broader downtrend from 84.17, 15 Mar annual high.

Res: 78.29, 78.50, 78.60, 78.80
Sup: 78.17, 78.00, 77.65, 77.50


Dollar/Swiss extended its short-term downtrend off 0.9970, as break below psychological support and near-term base at 0.9500, accelerated losses through initial support at 0.9461. Weekly close below 0.9500, sees potential for further bearish action, as the price dipped to 0.9430 so far, just ahead of our next target and very strong support zone at 0.9420/00, where Fib 61.8% of 0.9041/0.9970 and 200 day lie. Brief consolidation is for now limited within narrow range, with any stronger bounce, requiring regain of minimum 0.9520, to aver immediate downside risk and open way for stronger correction.

Res: 0.9465, 0.9487, 0.9500, 0.9520
Sup: 0.9430, 0.9420, 0.9400, 0.9366