EUR/USD: Potential Double-Top Pattern As Fails To Break Dec 19 High. The pair slips below the 23.6% Fibonacci of $1.2662 to $1.3308, former initial support. This follows the posting of a potential double-top pattern, the measured move targets $1.3010. Daily studies regain their bearish trend and we now see initial support at $1.3061/3084, the 38.2% Fibonacci level and former May 1 trendline. A break below here will confirm the double-top reversal pattern.
RES 4: $1.3487/91 High Feb 2012, 50.0% of $1.4940 to $1.2043
RES 3: $1.3380/94 Weekly upper Bollinger band, 100-week MA
RES 2: $1.3339 Upper Bollinger Band
RES 1: $1.3308 High Dec 19
LATEST PRICE: $1.3140
SUP 1: $1.3061/3084 38.2% of $1.2662-$1.3308, Former May 1 trendline
SUP 2: $1.2985/2989 50.0% of $1.2662 to $1.3308, 55-DMA
SUP 3: $1.2944/2948 Lower Bollinger band, Jul 24 support line
SUP 4: $1.2783 200-day moving average
GBP/USD: Potential Shooting-Star Reversal Pattern. COMMENTARY: Cable posts a gravestone doji, with the potential to become a shooting-star candle pattern. Focus turns to price action today, with a close below the former Apr 2011 trendline and the 21-DMA needed to confirm the reversal pattern. Initial support seen as the 21-DMA at $1.6166, further support seen at $1.6107, a Nov 16 support line. Bulls will aim to regain the high posted yesterday at $1.6381, however will meet strong resistance on the way.
RES 4: $1.6573 Reversal high 23 Aug 2011
RES 3: $1.6427 High April 2011
RES 2: $1.6381/6390 High Jan 2, 76.4% of $1.6747 to $1.5235
RES 1: $1.6308 Upper daily Bollinger band
LATEST PRICE: $1.6219
SUP 1: $1.6166 21-DMA
SUP 2: $1.6107 Support line from Nov 16
SUP 3: $1.6063/6067 55-day moving average, Low Dec 27
SUP 4: $1.6024/6043 Lower daily Bollinger band, 100-day moving average
USD/JPY: Bulls Continue To Eye Monthly Cloud Base At Y89.22. The cross follows daily, weekly and monthly studies higher despite daily studies languishing in overbought territory for weeks. Initial resistance now seen at Y87.90, the 3.00% MA Envelope, with further resistance from the monthly Ichimoku cloud base at Y89.22. Bulls will continue to slam on the buying pressure and bears will struggle to bring the pair down to the Tenkan line at Y85.79.
RES 4: Y94.99 May 2010 reversal high
RES 3: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 2: Y89.22 Monthly Ichimoku cloud base
RES 1: Y87.90 3.00% MA Envelope
LATEST PRICE: Y87.26
SUP 1: Y85.79 Tenkan line
SUP 2: Y84.89 200-week MA
SUP 3: Y84.54/61 Kijun line, 21-day moving average
SUP 4: Y82.83/84 Highs Dec 7 and Nov 22
EUR/JPY: Bulls Break Above Y115.00 Despite Stretched Studies. EUR/JPY creeps back below Y115.00 after posting a high of 115.99 yesterday, also initial resistance. 10-day momentum continues to show negative divergence and slow stochastic daily study trends sideways in overbought territory. If the pair fails to break the Y115.99 high from yesterday we may see scope to return to the downside, with initial support from the Tenkan line at Y113.46.
RES 4: Y119.51 Monthly Ichimoku cloud base
RES 3: Y117.98 55-month MA
RES 2: Y116.44 76.4% of Y123.33 to Y94.12
RES 1: Y115.99 High Jan 2
LATEST PRICE: Y114.74
SUP 1: Y113.46 Tenkan line
SUP 2: Y112.17/50 61.8% of Y123.33 to Y94.12, Dec 19 high
SUP 3: Y110.99/111.20/33 Kijun line, 21-DMA and Nov 13 supp line
SUP 4: Y109.93/98/110.01 Low Dec 17, High Dec 14
EasyForexNews Research Team