EUR/USD: Holds Under 50% of Range. The pair holds below 50% of it’s post-launch range, at $1.2135, which may now offer some resistance. Bears will overall, want to get the market talking about the $1.1881 June 2010 lows, but this is as the daily stochastic study sits just inside oversold territory. The 5-day moving average turns resistance at $1.2140.
RES 4: $1.2500 55-day moving average
RES 3: $1.2407 Low 28 June
RES 2: $1.2325 High 19 July, 21-day moving average
RES 1: $1.2140 5-day moving average
LATEST PRICE: $1.2075
SUP 1: $1.2042 Low 24 July
SUP 2: $1.2010 Minor Fibonacci level
SUP 3: $1.1950/80 2% moving average envelope, Bollinger band
SUP 4: $1.1881 Low June 2010
GBP/USD: Potential Bear-Cross. GBP sees potential for a bear-cross in the 5 & 21-day moving averages as well as the daily stochastic study as the current consolidation also risks forming a bear-flag pattern. This could be triggered with a move below $1.1.5486, leading to potential for a test of $1.5393 mid-July low. Bulls need to regain those 5 & 21 DMAs at $1.5578.
RES 4: $1.5748 200-day moving average, Bollinger band
RES 3: $1.5735 High 19 July
RES 2: $1.5632 55-day moving average
RES 1: $1.5574/78 5, 21-day moving average
LATEST PRICE: $1.5512
SUP 1: $1.5475/86 76.4% of mid-July rally, Low 23 July
SUP 2: $1.5409 Bollinger band
SUP 3: $1.5389/93 76.4% retracement of June rally, Low 12 July
SUP 4: $1.5269 Low 1 June
USD/JPY: Studies Remain Weak. USD/JPY studies remain weak as trade holds under the base of the Ichimoku cloud and 200-DMA of Y79.10/16, keeping bear’s attention on June lows of Y77.66.
RES 4: Y79.76 Top of Ichimoku cloud
RES 3: Y79.22/30 21-day moving average, Kijun line
RES 2: Y78.95/79.10/16 Tenkan line, 200-DMA, Base of Ichimoku cloud
RES 1: Y78.40 5-day moving average
LATEST PRICE: Y78.18
SUP 1: Y77.66/98 Low 1 June, 23 July
SUP 2: Y77.13 2% moving average envelope
SUP 3: Y76.32/37 Daily lows Aug 2011
SUP 4: Y76.03/16 Low 1 Feb 2012, 19 Aug, 23 Sep 2011
EUR/JPY: Daily Studies Weak but in Oversold Territory. EUR/JPY breaks under the June low of Y95.59. The daily studies remain weak but are also in oversold territory, showing some risks to the overall bear-trend.
RES 4: Y97.62/88 21-day moving average, Kijun line
RES 3: Y96.00/13 Tenkan line, Low 19 June
RES 2: Y95.59/68 Low 1 June, Minor channel top
RES 1: Y95.13 5-day moving average
LATEST PRICE: Y94.42
SUP 1: Y94.06/12 2% MAE, Low 25 July
SUP 2: Y93.69 50% Projection level
SUP 3: Y93.50 Bollinger band
SUP 4: Y93.16 Minor declining channel base
EasyForexNews Research Team