EUR/USD: Remains Heavy, Stops Below Initial Support. The Sept 19 highs remain key resistance with immediate focus remaining on retests of the 200-DMA until a close above is seen. The pair continues to remain heavy with stops noted below the Sept 20 lows and model selling expected on a close below the 200-DMA. Daily Slow Stochastic, RSI, Momentum and DMIA studies continue to unwind their previously overbought condition and have room to move.
RES 4: $1.3385 – High Mar 27
RES 3: $1.3284 – Monthly high May 1
RES 2: $1.3156 – Falling LT daily trend line off May 4 2011 highs
RES 1: $1.3086 – High Sept 19
LATEST PRICE: $1.2947
SUP 1: $1.2922 – Low Sept 20
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: Classic Topping Pattern. GBP continues to exhibit classic signs of topping with the spike to marginal fresh 2012 highs to end the week lacking follow through and closing just above the days lows. Combined with very overbought and now correcting daily RSI, Slow Stochastic, Momentum and DMIA indicators, this sees initial focus remain on retests of the initial support at $1.6144.
RES 4: $1.6616 – High Aug 19 2011
RES 3: $1.6451 – High Aug 29 2011
RES 2: $1.6365 – 21 day upper Bollinger band
RES 1: $1.6310 – 2012 high Sept 30
LATEST PRICE: $1.6216
SUP 1: $1.6144 – Low Sept 14
SUP 2: $1.6082 – Hourly support Sept 12
SUP 3: $1.5962 – Low Sept 10
SUP 4: $1.5913 – 38.2% retracement of $1.5270-1.6310 move
USD/JPY: Layers Of Resistance Y78.98-79.33. USD/JPY starts the new week having retested the Sept 20 lows with stops expected below. Layers of resistance remain in the Y78.98-79.33 region including the 100-DMA, 200-DMA, Sept monthly highs, Ichimoku Cloud and a major daily falling trend line. While this region caps focus will remain on retest of the Sept monthly lows. Daily tech studies are at very neutral levels and are no longer an issue.
RES 4: Y79.33 – 200 day moving average
RES 3: Y79.05 – 21 day upper Bollinger band
RES 2: Y78.98 – 100 day moving average
RES 1: Y78.45 – High Sept 20
LATEST PRICE: Y78.13
SUP 1: Y78.02 – Low Sept 20
SUP 2: Y77.66 – 21 day lower Bollinger band
SUP 3: Y77.26 – Low Sept 13
SUP 4: Y76.04 – 2012 low Feb 1 2011
EUR/JPY: Test Of Y100.60 Expected To Start The Week. With consecutive closes below the 200-DMA to end the week and correcting overbought daily tech studies, the pair remains heavy with initial support noted just below market. A close below Y100.60 sees initial focus turn to retests of the Y99.00-50 region and then the key Y97.90-95 region below. Topside EUR/JPY needs to close above the Sept 19 hourly resistance to shift focus higher.
RES 4: Y104.44 – High May 7
RES 3: Y103.84 – Monthly high Sept 17
RES 2: Y102.53 – Hourly resistance Sept 19
RES 1: Y101.78 – 200 day moving average
LATEST PRICE: Y101.15
SUP 1: Y100.60 – Hourly low Sept 13
SUP 2: Y99.54 – Low Sept 14
SUP 3: Y99.02 – 100 day moving average
SUP 4: Y97.92 – Low Aug 28
EasyForexNews Research Team