EUR/USD: Moving Sideways After Dark-Cloud Cover Pattern. The pair ranges between the May 1 trend-line and the former Sep 17 resistance line as we wait to see in which direction a new trend will emerge. We note the dark-cloud cover candle pattern posted on the 18th, increasing risk to the downside. However, daily tech studies continue to rise and daily Bollinger bands are widening. The 55-DMA also rises, nearing the 200-DMA, for a future potential golden-cross.
RES 4: $1.3172 High Sept 17
RES 3: $1.3140/43 Oct 17 high, May 1 trend-line
RES 2: $1.3120 Upper Bollinger Band
RES 1: $1.3072/84 High Oct 5, Oct 22
LATEST PRICE: $1.3054
SUP 1: $1.2986/92 Former resistance from Sept 17 – now supp, High Oct 12
SUP 2: $1.2965 21-day moving average
SUP 3: $1.2906 23.6% Fibonacci retracement of $1.2043-1.3172
SUP 4: $1.2810/26/36 Lower Bolli band, Low Oct 11, 200-DMA
GBP/USD: Focus Remains On $1.5977 Support Level. GBP remains below the Sep 21 trend-line and currently looks for support as daily tech studies point lower, we see the Oct 9 & 10 lows at $1.5977 as a key level, with the 55-DMA also providing support around $1.5984. Further support seen as the lower daily Bollinger band and Fibonacci levels at $1.5960/67. The daily Bollinger band is also widening showing the increased chance of high volatility.
RES 4: $1.6218/31 High 5 Oct, 76.4% Fibonacci of $1.6309-1.5977
RES 3: $1.6151/78/82 Res ln Sep 21, Hgh Oct 17, 61.8% Fib $1.6309-1.5977
RES 2: $1.6094/97/6104 21-DMA, High Oct 12, 38.2% Fibo $1.6309-1.5977
RES 1: $1.6045 5-day moving average
LATEST PRICE: $1.6012
SUP 1: $1.5977/84 Lows 9 & 10 Oct, 55-day moving average
SUP 2: $1.5960/67 Lower Bolli band, 38.2% Jun/Sep, 61.8% of 28 Aug rally
SUP 3: $1.5912 38.2% of $1.5269-$1.6309 move & High Aug 23
SUP 4: $1.5901 50% of Aug/Sep rally
USD/JPY: Oct 5 Res Line Broken, Focus Turns Higher. USD/JPY stormed through the 200-DMA and the Oct 5 resistance line to close below Y80.00, this appears to be forming resistance as today’s action was turned away from the same level. Initial resistance seen as the hourly high and Jul 5 high at Y80.01 and Y80.10, respectively. Daily tech studies remain firmly bullish and we see bulls eyeing a move to the 61.8% Fibonacci of Mar/Sep decline aroung Y81.50.
RES 4: Y81.78 High Apr 20
RES 3: Y81.49 61.8% Fibonacci of Mar/Sep decline
RES 2: Y80.55/62/65 Highs May 15, Jun 25, 50% Fibo Of Mar/Sep decline
RES 1: Y80.10 High Jul 5
LATEST PRICE: Y79.91
SUP 1: Y79.66 Former Oct 5 resistance line, August high
SUP 2: Y79.46 200-DMA
SUP 3: Y78.98 Tenkan line
SUP 4: Y78.73/80 Kijun Line, 100-day moving average
EUR/JPY: Focus Turns Higher To 61.8% Fibonacci Level. EUR/JPY moves above the upper rising channel level and now trades just above, the channel upper is now initial support at Y104.18. Daily tech studies continue to move higher and focus also turns higher towards the low of Apr 16 and 61.8% Fibonacci retracement level of the Mar to Jul decline, initial resistance at Y104.63 and Y104.71, respectively.
RES 4: Y108.00 High Apr 20
RES 3: Y107.21 76.4% Fibonacci of Mar/Jul decline
RES 2: Y105.65 Low Mar 6
RES 1: Y104.63/71 Low Apr 16, 61.8% Fibonacci of Mar/Jul decline
LATEST PRICE: Y104.37
SUP 1: Y104.18 Rising channel upper
SUP 2: Y102.81 Former resistance line from April
SUP 3: Y102.38 Tenkan Line
SUP 4: Y102.01/11 200-day moving average, Kijun line
EasyForexNews Research Team