EUR/USD: Bearish Engulfing Candle As Studies Weaken. The pair leaves a bearish engulfing candle and slips from its Jan 14 high of $1.3404 to hold above the 23.6% of $1.2877-1.3404, initial supp at $1.3280. Daily studies are weaker but have yet to confirm a bearish trend. Further supp seen at $1.3203, the 38.2% level and 21-DMA. Upside risk remains as bulls could regain the Jan 14 high, ahead of here we see res at $1.3318 and $1.3379/87, the 5-DMA followed by the upper Bolli band and 100-wk MA.
RES 4: $1.3442 100-month MA
RES 3: $1.3404 High Jan 14
RES 2: $1.3379/87 Upper daily Bollinger band, 100-week MA
RES 1: $1.3318 5-day moving average
LATEST PRICE: $1.3291
SUP 1: $1.3280 23.6% of $1.2877-1.3404
SUP 2: $1.3203 38.2% of $1.2877-1.3404 & 21-DMA
SUP 3: $1.3140/50 50.0% of $1.2887-1.3404, Former 38.2% of $1.4940-1.2043
SUP 4: $1.3074/78 Former May 1 trendline, 61.8% of $1.2877-1.3404
GBP/USD: Bears Look To Test Jun 2012 Support Line. The cross still stuck, however the base now seen as the Jun 2012 support line at $1.6036 and the 21-DMA is seen capping the pair at $1.6141. Daily studies slowly trend lower and bears will be looking to close below initial supp, seen as the Jun 2012 line and 61.8% of $1.5829-1.6381 at $1.6036/40. A break below here could target the lower Bolli band at $1.5991 and the 200-DMA at $1.5909. Upside risk remains as bulls eye the 21-DMA at $1.6141.
RES 4: $1.6210 Former Apr 2011 Trendline
RES 3: $1.6179 Former Support line from Nov 16
RES 2: $1.6141 21-day moving average
RES 1: $1.6100 5-DMA
LATEST PRICE: $1.6056
SUP 1: $1.6036/40 Jun 2012 support line, 61.8% of $1.5829 to $1.6381
SUP 2: $1.5991 Lower daily Bollinger band
SUP 3: $1.5959/61 76.4% of $1.5829 to $1.6381, 100-week MA
SUP 4: $1.5909 200-DMA
USD/JPY: Bearish Engulfing Pattern, Holds Above Dec 21 Support Line. USD/JPY leaves a bearish engulfing candle and today’s price action has sunk further. Daily studies are much lower and the pair found support around Y87.79/97, the 23.6% of Y81.69-89.67 and the Dec 21 support line. Further support seen at Y86.62/84, the 38.2% of Y81.69-89.67 and 21-DMA. Weekly studies are overbought and appear to be turning bearish, however bulls could push the pair back up to the Jan 14 high of Y89.67, initial resistance.
RES 4: Y94.99 May 2010 reversal high
RES 3: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 2: Y90.32 3.00% MA Envelope
RES 1: Y89.67 High Jan 14
LATEST PRICE: Y88.13
SUP 1: Y87.79/97 23.6% of Y81.69-89.67, Dec 21 support line
SUP 2: Y86.62/84 38.2% of Y81.69-89.67, 21-DMA
SUP 3: Y86.07 Kijun line
SUP 4: Y85.68 50.0% of Y81.69-89.67
EUR/JPY: Bearish Engulfing Candle As Studies Also Slide. EUR/JPY turning lower and leaving a bearish engulfing candle while daily studies have also declined. 10-day momentum is sharply lower and slow stochastic shows a potential sell-signal in overbought territory. The pair currently holds just above initial support, the 23.6% of Y105.98-120.13 and the Tenkan line at Y116.79/85. A break below here will open the downside to further declines. Further support seen at Y116.31, the Jan 10 Marabuzo mid-point.
RES 4: Y127.91 High April 2010
RES 3: Y123.09/33 38.2% of Y169.96-Y94.12, Apr 2011 reversal high
RES 2: Y120.13 High Jan 14
RES 1: Y118.89 Low Jan 14
LATEST PRICE: Y117.10
SUP 1: Y116.79/85 23.6% of Y105.98-120.13, Tenkan line
SUP 2: Y116.31 Jan 10 Marabuzo mid-point
SUP 3: Y115.99 High Jan 2
SUP 4: Y115.28 Support line from Dec 10
EasyForexNews Research Team