POWER: German Spot Power to Rise on Lower Wind

• RES 4: 1.4678 2.0% 10-dma envelope
• RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
• RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
• RES 1: 1.4467 High Dec 19 
• PRICE: 1.4389 @ 08:08 GMT Jan 6 
• SUP 1: 1.4336 Low Dec 20  
• SUP 2: 1.4320/4232 20-day EMA / Low Dec 17 
• SUP 3: 1.4136 50-day EMA
• SUP 4: 1.4011 Low Dec 5

USDCAD bulls remain in the driver’s seat. The latest pause in the uptrend appears to be a flag formation - a bullish continuation signal. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4320, the 20-day EMA. A pullback would be considered corrective.

• RES 4: 0.6471 High Dec 9
• RES 3: 0.6400 50-day EMA               
• RES 2: 0.6341 High Dec 18   
• RES 1: 0.6247/6276 High Dec 30 / 20-day EMA
• PRICE: 0.6232 @ 08:03 GMT Jan 6 
• SUP 1: 0.6179 Low Dec 31 
• SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
• SUP 3: 0.6100 Round number support 
• SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing

A bearish trend condition in AUDUSD remains intact and the pair continues to trade closer to latest lows. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to monitor is 0.6276, the 20-day EMA.

• RES 4: 6194.19 1.236 proj of the Aug 5 - Sep 3 - Sep 9 price swing    
• RES 3: 6178.75 High Dec 6 and key resistance   
• RES 2: 6163.75 High Dec 16  
• RES 1: 6006.92/6107.50 50-day EMA / High Dec 26         
• PRICE: 5999.25 @ 07:45 GMT Jan 6 
• SUP 1: 5911.25/5866.00 Low Jan 3 / Dec 20       
• SUP 2: 5811.65 38.2% retracement of the Aug 5 - Dec 6 bull leg  
• SUP 3: 5784.00 Low Nov 4 
• SUP 4: 5698.25 50.0% retracement of the Aug 5 - Dec 6 bull leg

A bear threat in the S&P E-Minis contract remains present. The reversal lower from the Dec 26 high, highlights the end of the recent Dec 20 - 26 corrective bounce. Attention is on 5866.00, the Dec 20 low and a key short-term support. Clearance of this level would strengthen a bearish theme. Initial firm resistance to monitor is 6107.50, the Dec 26 high. Clearance of this level is required to open key resistance at 6178.75, the Dec 6 high.