EUR/USD: Double-Top Pattern Confirmed As Studies Remain Bearish. The double-top pattern is confirmed as Euro-dollar slides and closes below the 38.2% and former May 1 trendline, now initial resistance. The pair has almost completed the measured move to $1.3010, below here we see support from the 50.0% of $1.2662 to $1.3308 and the 55-DMA at $1.2985/2987, respectively. Daily studies are also bearish although stochastic study creeps into oversold territory.
RES 4: $1.3333 Upper Bollinger Band
RES 3: $1.3308 High Dec 19
RES 2: $1.3134/3141/3156 5-DMA, 21-DMA, 23.6% of $1.2662 to $1.3308
RES 1: $1.3061/3083 38.2% of $1.2662-$1.3308, Former May 1 trendline
LATEST PRICE: $1.3036
SUP 1: $1.2985/2987 50.0% of $1.2662 to $1.3308, 55-DMA
SUP 2: $1.2948/2956 Lower Bollinger band, Jul 24 support line
SUP 3: $1.2909/2915 61.8% of $1.2662 to $1.3308, 100-DMA
SUP 4: $1.2781 200-day moving average
GBP/USD: Shooting-Star Reversal Pattern Confirmed, Bears Eye 200-DMA. The pair falls off a cliff and confirms the shooting-star candle pattern. Current price action trades under the Nov 16 former support line and has met support around $1.6062, the 55-DMA. Daily studies are also lower and we now see initial support at $1.6023 to $1.6050, consisting of the lower daily Bolli band, 21-week MA, 61.8% level and the 100-DMA. Bears will be eyeing a move down to the 200-DMA at $1.5902.
RES 4: $1.6381/6390 High Jan 2, 76.4% of $1.6747 to $1.5235
RES 3: $1.6301 Upper daily Bollinger band
RES 2: $1.6219 Apr 2011 former res line
RES 1: $1.6162 21-DMA
LATEST PRICE: $1.6076
SUP 1: $1.6023/37/40/50 Bolli band, 21-WMA, 61.8% of $1.5829-1.6381, 100-DMA
SUP 2: $1.5959/61 76.4% of $1.5829 to $1.6381, 100-week MA
SUP 3: $1.5902/37 200-DMA, Support line from Jun 2012
SUP 4: $1.5826/29/52 200-week MA, Low 15 Nov, 55-week MA
USD/JPY: Bulls Continue To Eye Monthly Cloud Base At Y89.22. The cross still gaining ground despite meeting heavy selling pressure yesterday, leaving a doji with a long lower shadow. Daily studies continue to push higher yet remain stretched and we see see initial resistance at Y88.14/19, Apr 2010 reversal low and the 3.00% MA envelope top. Bears will be looking to push towards initial support, which is seen as the Tenkan line at Y86.21.
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: Y88.14/19 Apr 2010 reversal low, 3.00% MA Envelope
LATEST PRICE: Y87.74
SUP 1: Y86.21 Tenkan line
SUP 2: Y84.78/86/90 Kijun line, 21-day moving average, 200-week MA
SUP 3: Y84.18 Reversal high 15 Mar
SUP 4: Y82.83/84 Highs Dec 7 and Nov 22
EUR/JPY: Potential Bearish Engulfing Candle, Bulls Eye Jan 2 High. The pair posts a long black candle yesterday, potentially a bearish engulfing candle. 10-day momentum has been showing negative divergence and stochastic study is in overbought levels. Initial support seen as the Tenkan line at Y113.78, a break below here will encourage bears. However, the pair remains bullish until a break below Y112.29 and Y111.63, the 23.6% level and Nov support line. Bulls will try to regain the Jan 2 high of Y115.99.
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: Y114.49
SUP 1: Y113.78 Tenkan line
SUP 2: Y112.17/29/50 61.8% Y123.33-94.12, 23.6% Y100.33-115.99, Dec 19 high
SUP 3: Y111.53/63 21-DMA and Nov 13 supp line
SUP 4: Y110.99 Kijun line
EasyForexNews Research Team