EUR/USD: Focus On $1.3404 Jan 14 High Key Initial Resistance. The pair managing to hold above initial support, the 23.6% of $1.2877-1.3404 at $1.3280. A break below here will encourage bears to test the 21-DMA at $1.3227. However daily studies remain bullish, albeit overbought, and initial resistance seen at $1.3404, the Jan 14 high and the level that has capped for 8 days. We continue to note the potential double-top pattern, a break below the 21-DMA would confirm a reversal. A weekly supp line lies at $1.3098.
RES 4: $1.3487/91 High Feb 2012, 50.0% of $1.4940 to $1.2043
RES 3: $1.3442 100-month MA
RES 2: $1.3433 Upper daily Bollinger band
RES 1: $1.3404 High Jan 14
LATEST PRICE: $1.3342
SUP 1: $1.3280 23.6% of $1.2877-1.3404
SUP 2: $1.3227 21-day moving average
SUP 3: $1.3203 38.2% of $1.2877-1.3404
SUP 4: $1.3140/50 50.0% of $1.2887-1.3404, Former 38.2% of $1.4940-1.2043
GBP/USD: Oversold Studies As Bears Eye Nov 15 Low. GBP remains below the 200-DMA but just moves back into the daily Bollinger band. Daily studies continue to slide however have entered oversold levels. Cable holds just above the Nov 15 low at $1.5829 for now, also the 50.0% of $1.5269-1.6381 at $1.5825. Bulls will aim to break above the 200-DMA at $1.5909 to test the short-term Jan 2 resistance line, further resistance at $1.5977. Initial resistance seen at $1.5876, the 55-week MA.
RES 4: $1.5977 Short-term res line from Jan 2 high
RES 3: $1.5956/59 100-week MA, Former 76.4% of $1.5829-1.6381
RES 2: $1.5909/11 200-DMA, 5-DMA
RES 1: $1.5876 55-week MA
LATEST PRICE: $1.5854
SUP 1: $1.5825/29 50.0% of $1.5269-1.6381, Low 15 Nov
SUP 2: $1.5793/5806 High Jun 18, Low Jan 21
SUP 3: $1.5755 Low Aug 28
SUP 4: $1.5694 61.8% of $1.5269-1.6381
USD/JPY: Long Upper Shadow Encourages Bears. The pair already shows a long upper shadow as the pair tried to break above Y90.25, initial resistance from the Jan 21 high, however strong selling has forced dollar-yen down to test initial support instead. The pair found support from the Dec 21 support line at Y88.89, just above the 23.6% of Y83.86-90.25 at Y88.74. A break below Y88.74/89 will target the 38.2% and 21-DMA at Y87.81/84. However bulls will be aiming to regain the Jan 21 high.
RES 4: Y94.99 May 2010 reversal high
RES 3: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 2: Y91.07 3.00% MA Envelope
RES 1: Y90.13/21/25 Highs Jan 22, 18 & 21
LATEST PRICE: Y89.13
SUP 1: Y88.74/87/89 23.6% of Y83.86-90.25, High Jan 16, Dec 21 support line
SUP 2: Y87.81/84 38.2% of Y83.86-90.25, 21-day moving average
SUP 3: Y87.04/06 Kijun line, 50.0% of Y81.69-90.25
SUP 4: Y85.68 61.8% of Y81.69-90.25
EUR/JPY: Lower High And Lower Low Cautions Bulls. EUR/JPY posts a lower high and lower low while today’s price action shows the same, today’s close will confirm. The long upper shadow also
highlights the selling pressure as bulls have failed to regain the Jan 18 high of Y120.71. Initial resistance now seen at Y120.16, the hourly high. Daily and weekly studies are stretched and overbought, bears will aim for a move down to the 23.6% and Tenkan line at 117.23 and 117.74, respectively.
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: Y120.71 High Jan 18
RES 1: Y120.16 Hourly high
LATEST PRICE: Y119.01
SUP 1: Y118.66 Hourly low
SUP 2: Y118.25 High Jan 16
SUP 3: Y117.74/84 Tenkan line, High Jan 10
SUP 4: Y117.23 23.6% of Y105.98-120.71
EasyForexNews Research Team