EUR/USD: Spinning-Top Doji Cautions, Studies Stretched. The pair leaves a spinning-top doji, a signal of indecision as bulls and bears fight to control. Daily studies remain bullish however slow stochastic enters overbought territory and has weakened a touch. Initial support remains at $1.3280, the 23.6% of $1.2877-1.3404. The pair has broken below here before but hasn’t closed below since Jan 10. Initial res at $1.3404, the Jan 14 high. Weekly studies are stretched as we note the potential double-top pattern.
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: $1.3438 Upper daily Bollinger band
RES 1: $1.3404 High Jan 14
LATEST PRICE: $1.3309
SUP 1: $1.3280 23.6% of $1.2877-1.3404
SUP 2: $1.3232 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: Back Within Bolli Band, Potential Double-Day Low. GBP hanging around just above $1.5800 as the pair may have formed a double-day bottom with the previous two session lows, also our initial support level at $1.5806/10, the Jan 21 and 22 lows. The lower daily Bollinger band also lies at $1.5805. Daily studies remain bearish but are oversold and stretched. Initial resistance seen at $1.5872/76, the 5-DMA and 55-week MA. The weekly studies are still bearish and monthly studies appear to be turning bearish.
RES 4: $1.5993/6003 Low Jan 9, Low Dec 7
RES 3: $1.5948/56/59 S-T res line Jan 2, 100-week MA, 76.4% $1.5829-1.6381
RES 2: $1.5908 200-DMA
RES 1: $1.5872/76 5-DMA, 55-week MA
LATEST PRICE: $1.5829
SUP 1: $1.5805/06/10 Lower daily Bolli band, Low Jan 21 & 22
SUP 2: $1.5755 Low Aug 28
SUP 3: $1.5694 61.8% of $1.5269-1.6381
SUP 4: $1.5571 Monthly Trendline from Jan 2009
USD/JPY: Potential Weekly Bearish Engulfing Pattern. USD/JPY follows daily studies lower as the pair slides below the Tenkan line and former Dec 21 support line, now our initial resistance level at Y89.02/11. Dollar-yen also fell through the 23.6% of Y81.69-90.25 and currently is pushing lower towards the 21-DMA. Our initial support level is seen at Y87.81/99, the 38.2% of Y81.69-90.25 and 21-DMA. The weekly chart shows a bearish engulfing pattern and weekly studies are reversing lower.
RES 4: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 3: Y91.27 3.00% MA Envelope
RES 2: Y90.13/21/25 Highs Jan 22, 18 & 21
RES 1: Y89.02/11 Tenkan line, Dec 21 former support line
LATEST PRICE: Y88.19
SUP 1: Y87.81/99 38.2% of Y83.86-90.25, 21-day moving average
SUP 2: Y87.06 Kijun line & 50.0% of Y81.69-90.25
SUP 3: Y86.30 61.8% of Y81.69-90.25
SUP 4: Y85.37 76.4% of Y81.69-90.25
EUR/JPY: Studies Turning Bearish, 23.6% Key Initial Support. EUR/JPY slides below the Tenkan line as daily and weekly studies begin to look decidedly bearish, weekly slow stochastic study shows a potential sell-signal. Initial support now seen at Y117.01/23, a Dec 21 support line and the 23.6% of Y105.98-120.71. A close below here will confirm the bearish trend. The Tenkan line is initial resistance at Y118.59, bulls will be looking to regain this territory. However risk appears to be to the downside.
RES 4: Y120.71 High Jan 18
RES 3: Y120.13 High Jan 14
RES 2: Y119.51 Monthly Ichimoku cloud base
RES 1: Y118.59 Tenkan line
LATEST PRICE: Y117.42
SUP 1: Y117.01/23 Dec 10 support line, 23.6% of Y105.98-120.71
SUP 2: Y116.31 Jan 10 Marabuzo mid-point
SUP 3: Y115.67/99 Kijun line, High Jan 2
SUP 4: Y115.08 38.2% of Y105.98-120.71
EasyForexNews Research Team