POWER: CWE Morning Wind Forecast

• RES 4: 161.95 High Jul 3 ‘24 and a major resistance
• RES 3: 161.46 1.618 proj of the Jan 27 - Feb  - 12 price swing
• RES 2: 160.79 1.500 proj of the Jan 27 - Feb  - 12 price swing
• RES 1: 160.03/ 160.46 High Apr 7 / High Mar 30 and the bull trigger
• PRICE: 158.27 @ 07:15 BST Apr 8  
• SUP 1: 158.15 Intraday low 
• SUP 2: 157.80 50-day EMA 
• SUP 3: 156.46 Low Mar 5 
• SUP 4: 155.85 Low Mar 2 

The trend set-up in USDJPY remains bullish and short-term shallow pullbacks are - for now - considered corrective. Note that moving average studies are in a bull-mode position, highlighting a dominant medium-term uptrend. A resumption of gains would open 160.79 next, a Fibonacci projection. Initial firm support to watch lies at 157.80, the 50-day EMA. A clear break of this average would signal scope for a deeper retracement.

• RES 4: 0.8797 High Dec 17
• RES 3: 0.8789 High Feb 27 and key resistance
• RES 2: 0.8747 76.4% retracement of the Feb 27 - Mar 16 bear leg
• RES 1: 0.8742 High Mar 31 and Apr 1
• PRICE: 0.8706 @ 07:10 BST Apr 8
• SUP 1: 0.8690 50-day EMA  
• SUP 2: 0.8637/10 Low Mar 26 / 16 and the bear trigger
• SUP 3: 0.8597 Low Aug 14
• SUP 4: 0.8578 Low Jul 2 ‘25 

A strong rally last week in EURGBP confirmed a clear reversal of the bear cycle between Feb 27 and Mar 16. This opens 0.8747 next, the 76.4% retracement of the Feb - Mar bear leg. Note that the most recent consolidation appears to be a bull flag formation, reinforcing S/T bullish conditions. Clearance of 0.8747 would open 0.8789, the Feb 27 high and a key resistance. Support to watch lies at 0.8690, the 50-day EMA. 

• RES 4: 7035.00 High Feb 25    
• RES 3: 6963.00 High Mar 2  
• RES 2: 6921.09 76.4% retracement of the Jan 28 - Mar 31 bear leg  
• RES 1: 6873.25 High Mar 11       
• PRICE: 6833.00 @ 06:57 BST Apr 8
• SUP 1: 6650.67 20-day EMA   
• SUP 2: 6567.00/6503.75 Low Apr 6 and key S/T support / Low Apr 2 
• SUP 3: 6353.25 Low Mar 31 and key support 
• SUP 4: 6316.61 3.236 proj of the Feb 11 - 17 - 25 price swing

A strong rally in S&P E-Minis today highlights an extension of the reversal that started Mar 31. Note that trend signals remain bearish and for now, gains are considered corrective. A continuation higher would open 6921.09, a Fibonacci retracement point. Key medium-term resistance and the bull trigger is far off at 7096.50, the Jan 28 high. Initial firm support to watch lies at 6567.00, the Apr 6 low.