EUR/USD. Although marginally managing fresh 4 month highs to start the week the EUR/USD remains capped by the long term falling daily trend line off 2011 highs from May 4 coming in around $1.3180. Very overbought RSI, Slow Stochastic and Momentum studies may also be slowing the move higher and could prompt a correction lower while they unwind a little. Downside the 200-DMA remains the pivot point.
RES 4: $1.3485 – 2012 High Feb 29
RES 3: $1.3385 – High Mar 27
RES 2: $1.3284 – Monthly high May 1
RES 1: $1.3180 – Falling LT daily trend line off May 4 2011 highs
LATEST PRICE: $1.3105
SUP 1: $1.3020 – Hourly support Sept 14
SUP 2: $1.2873 – Low Sept 13
SUP 3: $1.2827 – 200 day moving average
SUP 4: $1.2761 – Hourly support Sept 11
GBP/USD: Edging Closer To 2012 Highs. The move towards 2012 highs continues as do the spikes above the sharply rising 21 day upper Bolli band (1.6264). Daily tech studies remain a concern with Slow Stochastics, RSI and Momentum studies all at very overbought levels and looking to correct. Corrections are a necessary part of a trend and a close below the $1.6082 supp from Sept
12 is needed to place a continuation higher in doubt.
RES 4: $1.6745 – High Apr 28 2011
RES 3: $1.6616 – High Aug 19 2011
RES 2: $1.6451 – High Aug 29 2011
RES 1: $1.6302 – 2012 high April 30
LATEST PRICE: $1.6255
SUP 1: $1.6212 – Low Sept 17
SUP 2: $1.6144 – Low Sept 14
SUP 3: $1.6082 – Hourly support Sept 12
SUP 4: $1.5962 – Low Sept 10
USD/JPY: Y79.01-31 Region Caps On First Attempt. The bounce from Sept monthly lows has paused ahead of the previously identified Y79.01-Y79.31 region with the upper 21 day Bolli band (Y77.21) and Ichimoku cloud top (Y79.14) adding to the layers of resistance that include the 100-DMA (Y79.05), 200-DMA and falling daily trend line. A close above this region is needed to shift focus to retests of the Aug monthly highs and potentially 2012 highs overall.
RES 4: Y79.66 – Monthly High Aug 20
RES 3: Y79.32 – 200 day moving average
RES 2: Y79.15 – Falling daily trend line from April 20 highs
RES 1: Y79.01 – Double daily top Sept 6 & 7
LATEST PRICE: Y78.56
SUP 1: Y78.17 – Low Sept 17
SUP 2: Y77.67 – 21 day lower Bollinger band
SUP 3: Y77.26 – Low Sept 13
SUP 4: Y76.04 – 2012 low Feb 1 2011
EUR/JPY: Hesitating Ahead Of May 7 Highs. Following the close above the 200-DMA the pair is pausing ahead of the May 7 highs with very overbought daily Slow Stochastics, RSI and Momentum indicators noted. Although the 200-DMA remains significant we look for a close back below the hourly support from Sept 13 at Y100.60 to see immediate focus return to retests of the key Y97.90-95 region. Expect small stops below yesterdays lows.
RES 4: Y108.03 – High April 20
RES 3: Y106.56 – Monthly high May 2
RES 2: Y104.85 – 61.8% retracement of Y111.42-Y94.14 move
RES 1: Y104.44 – High May 7
LATEST PRICE: Y102.67
SUP 1: Y102.60 – Low Sept 17
SUP 2: Y101.99 – Hourly support Sept 14
SUP 3: Y101.78 – 200 day moving average
SUP 4: Y100.60 – Hourly low Sept 13
EasyForexNews Research Team