EUR/USD: Recovery Tests 21-Day Moving Average. The pair holds above the 5-day moving average at $1.2220, testing the 21-DMA at $1.2295. The daily stochastic study is recovering and a sustained break of the 21-DMA risks Fiboncci retracements of the July pullback at $1.2397 and $1.2480, although 10-day momentum is weakening back towards the zero line.
RES 4: $1.2480 61.8% of July pullback, 55-day moving average
RES 3: $1.2407 Low 28 June
RES 2: $1.2390/97 High 27 July, 50% of July pullback
RES 1: $1.2295 21-day moving average
LATEST PRICE: $1.2290
SUP 1: $1.2220 5-day moving average
SUP 2: $1.2035/42 Bollinger band, Low 24 July
SUP 3: $1.2010 Minor Fibonacci level
SUP 4: $1.1970 2% moving average envelope
GBP/USD: Tests 200-Day Moving Average. GBP built on the impressive recovery of the 21-day moving average, which remains support at $1.5595, turning bull’s attention to the $1.5745 200-DMA ahead of Fibonacci level at $1.5786. However, the daily studies remain neutral.
RES 4: $1.5908 61.8% retracement of May/Jun decline
RES 3: $1.5807 Low 5 April
RES 2: $1.5775/86 Bollinger band, 100-DMA, 50% of May/Jun decline
RES 1: $1.5745/68 200-day moving average, High 30 July
LATEST PRICE: $1.5472
SUP 1: $1.5611/31 55, 5-day moving average
SUP 2: $1.5595 21-day moving average
SUP 3: $1.5459 Low 25 July
SUP 4: $1.5393/1.5405 Low 12 July, Bollinger band
USD/JPY: Studies Seek a Base. USD/JPY studies are seeking a base in oversold territory but trade holds under the base of the Ichimoku cloud, 21 & 200-DMA of Y79.03/35, keeping bear’s attention on June lows of Y77.66. The 5-day moving average turns initial support at Y78.28.
RES 4: Y79.75 Top of Ichimoku cloud
RES 3: Y79.26/35 55-DMA, Kijun line, Base Ichimoku cloud
RES 2: Y79.03/13 21, 200-day moving average
RES 1: Y78.58 Tenkan line
LATEST PRICE: Y78.39
SUP 1: Y77.66/98 Low 1 June, 23 July
SUP 2: Y76.90 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 Still in Oversold Territory. EUR/JPY also sees the daily studies attempt a recovery from oversold territory as the market overtakes the Tenkan line of Y95.76 and bulls turn their attention to Fibonacci levels from Y97.76.
RES 4: Y99.45/51/67 38.2% level, Ichimoku cloud, 76.4% retracement
RES 3: Y98.36/61/79 Low 28 June, 61.8% of July pullback, 55-DMA
RES 2: Y97.76 50% retracement of July pullback, Kijun line
RES 1: Y97.16/33 21-day moving average, High 27 July
LATEST PRICE: Y96.30
SUP 1: Y95.67/76 5-day moving average, Tenkan line
SUP 2: Y94.12 Low 25 July
SUP 3: Y93.80/97 Bollinger band, 2% MAE
SUP 4: Y93.69 50% Projection level
EasyForexNews Research Team