EUR/USD: Daily Tech Studies Correcting Lower. The pair continues to edge closer to the 200-DMA as daily tech studies continue to work off their overbought condition. Topside, the $1.3086-72 region remains key and is likely to remain tough going until at the major daily tech studies have moved back to more neutral levels. The 200-DMA is seen as pivotal support with the pair having spent very little time trading above it in the past 12 months.
RES 4: $1.3172 – Monthly high Sept 17
RES 3: $1.3151 – Falling LT daily trend line off May 4 2011 highs
RES 2: $1.3086 – High Sept 19
RES 1: $1.2972 – Hourly resistance Sept 24
LATEST PRICE: $1.2938
SUP 1: $1.2873 – Low Sept 13
SUP 2: $1.2826 – 200 day moving average
SUP 3: $1.2761 – Hourly support Sept 11
SUP 4: $1.2627 – Low Sept 7
GBP/USD: Remains Heavy, Lower Levels Favoured. The overnight spike lower fell short of the Sept 14 lows with the $1.6166 level now seen as initial support. The Sept 12 hourly support remains somewhat pivotal with a close below expected to see overall focus return to possible tests of the 200-DMA at $1.5768. Topside moves are expected to remain hampered by daily tech studies that remain at overbought levels although beginning to slowly correct lower.
RES 4: $1.6451 – High Aug 29 2011
RES 3: $1.6365 – 21 day upper Bollinger band
RES 2: $1.6310 – 2012 high Sept 30
RES 1: $1.6257 – Hourly resistance Sept 21
LATEST PRICE: $1.6229
SUP 1: $1.6166 – Low Sept 20
SUP 2: $1.6144 – Low Sept 14
SUP 3: $1.6082 – Hourly support Sept 12
SUP 4: $1.5962 – Low Sept 10
USD/JPY: Focus On Spikes Below Bollinger Band. USD/JPY continues to head lower with a spike below 21 day lower Bolli band expected as the pair works back towards the Sept 13 lows at Y77.26. A close above the Sept 20 highs is now needed to relieve current downside pressure and shift focus back to the layers of res that remain in the Y78.96-79.33 region including the 100-DMA, 200-DMA, Sept monthly highs, Ichimoku Cloud and a major daily falling trend line.
RES 4: Y79.33 – 200 day moving average
RES 3: Y79.02 – 21 day upper Bollinger band
RES 2: Y78.96 – 100 day moving average
RES 1: Y78.45 – High Sept 20
LATEST PRICE: Y77.86
SUP 1: Y77.58 – 21 day lower Bollinger band
SUP 2: Y77.26 – Low Sept 13
SUP 3: Y76.50 – Low Feb 6
SUP 4: Y76.04 – 2012 low Feb 1
EUR/JPY: 21-DMA Supports On First Attempt. While the 200-DMA remains key resistance, the pair has found support just ahead of the 21-DMA with a close below now needed to confirm downside momentum or else risk a bounce back to the 200-DMA. Current focus remains on a retest of the 100-DMA and then the multiple Aug daily lows in the Y97.90-95 region below. Daily tech studies continue to correct from overbought levels.
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: Y100.61
SUP 1: Y100.31 – 21 day moving average
SUP 2: Y99.54 – Low Sept 14
SUP 3: Y98.98 – 100 day moving average
SUP 4: Y97.92 – Low Aug 28
EasyForexNews Research Team