EUR/USD: Tech Studies And Trend Line Capping. It appears as though a combination of the long term falling trend line capping and now correcting very overbought daily RSI, Slow Stochastic, Momentum and DMIA studies are weighing on the pair and could see a push back towards the 200-DMA. Topside above the falling daily trend line is needed to kick start topside momentum but this may be difficult with tech studies are current levels.
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: $1.3175 – Falling LT daily trend line off May 4 2011 highs
LATEST PRICE: $1.3049
SUP 1: $1.3020 – Hourly support Sept 14
SUP 2: $1.2873 – Low Sept 13
SUP 3: $1.2828 – 200 day moving average
SUP 4: $1.2761 – Hourly support Sept 11
GBP/USD: Correction Now Looking More Likely. After coming so close to retesting the 2012 highs, an inside day yesterday combined with daily RSI, Slow Stochastic and Momentum indicators all looking to correct from lofty overbought levels could be setting the pair up for a correction back towards the key Sept 12 support at $1.6082. Topside fresh 2012 highs are needed to kick start topside momentum, but a correction is now looking more likely.
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: $1.6249
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: Y79.01-33 Region Being Tested. The Y79.01-33 region is being tested again after the bounce from Sept monthly lows with a close above needed to see initial focus shift back to retests of June monthly highs and then the Y81.70-80 region. Back below the Sept 17 low’s needed to see focus on retests of the 2012 lows but with daily tech studies correcting from oversold levels the pair may need to work this off a little before heading lower.
RES 4: Y80.61 – Monthly High June 25
RES 3: Y79.66 – Monthly High Aug 20
RES 2: Y79.33 – 200 day moving average
RES 1: Y79.21 – 21 day upper Bollinger band
LATEST PRICE: Y79.14
SUP 1: Y78.17 – Low Sept 17
SUP 2: Y77.71 – 21 day lower Bollinger band
SUP 3: Y77.26 – Low Sept 13
SUP 4: Y76.04 – 2012 low Feb 1 2011
EUR/JPY: Daily Tech Studies Looking Heavy. Failure to better the Sept 17 high to start the week combined with correcting overbought daily tech studies increases the risk of a pullback towards the 200 -DMA with a close below needed to shift focus back to retests of the repeated Aug/Sept lows noted in the 97.90-95 region. Expect sellers ahead of the Y103.80-Y104.44 region with stops above.
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: Y102.43
SUP 1: Y102.43 – Low Sept 18
SUP 2: Y101.99 – Hourly support Sept 14
SUP 3: Y101.79 – 200 day moving average
SUP 4: Y100.60 – Hourly low Sept 13
EasyForexNews Research Team