FOREX: Pound Capped by 21-DMA, Euro May Test Cycle Highs



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EUR/USD -- Supported by 21- and 55-DMAs, the euro may
attempt another move toward cycle highs
* 3rd resistance: 1.2555, YTD high
* 2nd resistance: 1.2469, 78.6% Fibonacci retracement of drop
since Feb. 16
* 1st resistance: 1.2444, March 7 high
* Spot: 1.2408
* 1st support: 1.2335, 21-DMA
* 2nd support: 1.2269, March 5 low
* 3rd support: 1.2234, 55-DMA

GBP/USD -- Short-term bottom in place, downside risks
intact as long as 21-DMA caps on a closing basis
* 3rd resistance: 1.3997, Feb. 27 high
* 2nd resistance: 1.3930, March 6 high
* 1st resistance: 1.3914, 21-DMA
* Spot: 1.3900
* 1st support: 1.3846, March 7 low
* 2nd support: 1.3828, 55-DMA
* 3rd support: 1.3712, March 1 low

USD/JPY -- Keeps trading heavy, bulls target 21-DMA test to
establish short-term bottom
* 3rd resistance: 107.45, pivot r3
* 2nd resistance: 106.95, 21-DMA
* 1st resistance: 106.46, March 6 high-conversion line
* Spot: 106.01
* 1st support: 105.46, March 7 low
* 2nd support: 105.25, YTD low
* 3rd support: 104.94, 78.6% Fibonacci retracement of gains
since U.S. elections

AUD/USD -- Capped by 21-DMA, firmly in bearish mode for now
* 3rd resistance: 0.7893, Feb. 26 high
* 2nd resistance: 0.7882, 55-DMA
* 1st resistance: 0.7836, 21-DMA
* Spot: 0.7827
* 1st support: 0.7772, March 7 low
* 2nd support: 0.7713, March 1 low
* 3rd support: 0.7638, 78.6% Fibonacci retracement of gains
since December

Source: Bloomberg Pro Terminal

Trader Velizar Mitov

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