EUR/USD: Continuation Lower Remains Favoured. The slide towards the 200-DMA continues with the pair now having taken out the Sept 13 lows and triggering stops below the $1.2880-90 region. We continue to look for a close below the 200-DMA to confirm the current downside bias with immediate focus then shifting to tests of the 1.2466 Aug 28 lows. Topside the EUR/USD needs to close above the long term falling daily trend line that’s seen around $1.3146.
RES 4: $1.3172 – Monthly high Sept 17
RES 3: $1.3146 – 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: $1.2876
SUP 1: $1.2825 – 200 day moving average
SUP 2: $1.2761 – Hourly support Sept 11
SUP 3: $1.2627 – Low Sept 7
SUP 4: $1.2534 – 100 day moving average
GBP/USD: Break Of Initial Support Targeted. Yet another spike that lacked follow through overnight as the pair manages to hold above the $1.6144-66 support region for now. A break lower remains favoured that initially tests the Sept 12 hourly support with overall potential for a move back to the 200-DMA ($1.5770). Daily tech studies continue to slowly correct from overbought levels and are continuing to weigh on the pair.
RES 4: $1.6451 – High Aug 29 2011
RES 3: $1.6381 – 21 day upper Bollinger band
RES 2: $1.6310 – 2012 high Sept 30
RES 1: $1.6267 – High Sept 25
LATEST PRICE: $1.6188
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: Remains Heavy, Lower Levels Likely. Spikes below the falling 21 day lower Bollinger band are expected to resume as USD/JPY continues to head lower with the Sept monthly lows lurking just below and stops expected on a break. Topside the pair needs to close above the Sept 20 highs to relieve the immediate downside pressure but a bearish bias will remain until the pair can manage a close above the 200-DMA at 79.32.
RES 4: Y79.02 – 21 day upper Bollinger band
RES 3: Y78.96 – 100 day moving average
RES 2: Y78.45 – High Sept 20
RES 1: Y77.93 – High Sept 25
LATEST PRICE: Y77.75
SUP 1: Y77.50 – 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: Targeting Aug 28 Lows. The rising daily trend line off the July monthly lows currently supports just below market at Y100.02 with a break lower favoured that sees the pair dip back to the key support In the Y97.90-95 region from late Aug. Topside a close back above the 200-DMA is needed to relieve the immediate downside pressure with initial resistance now noted at yesterdays high.
RES 4: Y103.84 – Monthly high Sept 17
RES 3: Y102.53 – Hourly resistance Sept 19
RES 2: Y101.78 – 200 day moving average
RES 1: Y101.04 – High Sept 25
LATEST PRICE: Y100.08
SUP 1: Y99.54 – Low Sept 14
SUP 2: Y98.95 – 100 day moving average
SUP 3: Y97.92 – Low Aug 28
SUP 4: Y95.76 – Low Aug 10
EasyForexNews Research Team