EUR/USD: Signs of Recovery in Daily Stochastic Study. The EUR recovers the 5-DMA, which turns initial support at $1.2260, amid some early signs of a potential recovery in the daily stochastic study. However, bulls need to recover the 21-DMA of $1.2423 to re-establish themselves. While $1.2162 remains the low, Fibonacci levels include $1.2365/85, $1.2428/55, $1.2490 and $1.2524 but bears remain focused on previous lows at $1.2151 and 50% level at $1.2135.
RES 4: $1.2693 High 29 June
RES 3: $1.2577 55-day moving average
RES 2: $1.2423 21-day moving average
RES 1: $1.2407 Low 28 June
LATEST PRICE: $1.2279
SUP 1: $1.2162 Low 13 July
SUP 2: $1.2151 Low 29 June 2010
SUP 3: $1.2124/35 Bollinger band, 50% of euro range
SUP 4: $1.1881 Low June 2010
GBP/USD: Bull-Cross. GBP recovers the 21-DMA, which turns support as it also risks a bull-cross with the 5-DMA at $1.5589. Bulls turn their attention to the 200-DMA of $1.5752 and the spike high from 18 June at $1.5802, encouraged by bull-signals from the 10-day momentum and stochastic studies.
RES 4: $1.5800/02 100-DMA, Spike high 18 June
RES 3: $1.5786 50% of May/June decline
RES 2: $1.5723/52 High 2 July, Bollinger band, 200-day moving average
RES 1: $1.5685 55-day moving average
LATEST PRICE: $1.5645
SUP 1: $1.5589 5, 21-day moving average
SUP 2: $1.5435 Bollinger band
SUP 3: $1.5389/93 76.4% retracement of June rally, Low 12 July
SUP 4: $1.5304 Interim low 8 June
USD/JPY: Tests Base of Ichimoku Cloud. The pair is testing both the 200-DMA of Y79.06 and the base of the Ichimoku cloud at Y78.92, turning bear’s attention to June lows of Y78.62 and Y77.66. This comes as studies remain weak. Bulls need to recover the 21-DMA, which is part of resistance within Y79.40/62.
RES 4: Y80.91 50% retracement of Y84.16-Y77.66
RES 3: Y80.48/63 Top of Ichimoku cloud, 100-DMA, High 2 May, 25 June
RES 2: Y80.30 Bollinger band
RES 1: Y79.40/62 Tenkan line, 21-day moving average, Kijun line
LATEST PRICE: Y79.05
SUP 1: Y78.92 Base of Ichimoku cloud
SUP 2: Y78.62/79 Low 15 June, Bollinger band, 61.8% of June rally
SUP 3: Y78.36 76.4% retracement of June rally
SUP 4: Y77.66/86 Low 1 June, 2% MAE
EUR/JPY: Daily Studies Seek Base. EUR/JPY bears grind towards the June low of Y95.59 with initial focus on support from the 5-DMA at Y96.98 and recent low of Y96.17. However, the daily studies are showing recovery signs so bulls will want to build on these and turn focus back to MA & Ichimoku resistance at Y98.29/34 and Y98.89/91.
RES 4: Y99.40 2% Moving Average Envelope
RES 3: Y99.13 Base of the Ichimoku cloud
RES 2: Y98.89/91 21-DMA, Kijun line
RES 1: Y98.29/34 Tenkan line, Low 28 June
LATEST PRICE: Y97.03
SUP 1: Y96.17 Low 16 June
SUP 2: Y95.73 Bollinger band
SUP 3: Y95.47/59 2% MAE, Low 1 June
SUP 4: Y95.10 Support line from 16 Jan
EasyForexNews Research Team