EUR/USD: Fails Ahead Of Jan 14 High, Studies Stretched. EUR/USD moves higher, above the 5-DMA, however continues to trade in a range, with res seen at the Jan 14 high of $1.3404 and the 23.6%, at $1.3280, along with the Jan 23 and 22 lows, at $1.3265/67. 10-day momentum shows negative divergence while euro-dollar fails ahead of the Jan 14 high. Daily stochastic remains in overbought territory while weekly studies look stretched. Failure to break above the Jan 14 high will skew risk to the downside.
RES 4: $1.3528 200-week moving average
RES 3: $1.3487/91 High Feb 2012, 50.0% of $1.4940 to $1.2043
RES 2: $1.3442/68 100-month MA, Upper daily Bollinger band
RES 1: $1.3382/3404 100-week MA, High Jan 14
LATEST PRICE: $1.3365
SUP 1: $1.3339 5-day moving average
SUP 2: $1.3280 23.6% of $1.2877-1.3404
SUP 3: $1.3265/67 Lows of Jan 23 and 22
SUP 4: $1.3246 21-day moving average
GBP/USD: Bears Eye Monthly Trendline Support At $1.5571. The pair sinks further, below the lows of Jan 21, 22 & 23 and hits a low of $1.5757, now initial sup alongside the daily Boll band base and the Aug 28 low at $1.5732/55, respectively. Daily studies continue to fall and are the lowest for months. Another break below initial sup may target the monthly Jan 2009 trendline at $1.5571. However, the stretched daily studies could indicate a slight pull-back, but medium and long-term risk remains to the downside.
RES 4: $1.5956 100-week MA
RES 3: $1.5904/05 200-DMA, 23.6% of $1.6381-1.5757
RES 2: $1.5876/90 55-week MA, Short-term res line from Jan 2 high
RES 1: $1.5802/06/10/16 Low Jan 23, Low Jan 21 & 22, 5-DMA
LATEST PRICE: $1.5773
SUP 1: $1.5732/55/57 Lower daily Bolli band, Low Aug 28, Low Jan 24
SUP 2: $1.5694 61.8% of $1.5269-1.6381
SUP 3: $1.5571 Monthly Trendline from Jan 2009
SUP 4: $1.5491 Low Aug 2 2012
USD/JPY: Highest Since Jul 2010 – L-T Trend Is Bullish. USD/JPY soars higher, punching through resistance levels to reach the highest since July 2010. The weekly chart shows long lower shadows for the past three weeks, highlighting the buying pressure. Daily studies may look overbought and momentum even shows negative divergence, however bulls appear to be in control and the long-term trend is bullish. Initial resistance now seen at Y90.79, the 2.00% MA envelope. Further res at Y91.68, the 3.00% MA envelope.
RES 4: Y94.99 May 2010 reversal high
RES 3: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 2: Y91.68 3.00% MA Envelope
RES 1: Y90.79 2.00% MA envelope
LATEST PRICE: Y90.57
SUP 1: Y89.57 Dec 21 former support line
SUP 2: Y89.24 Tenkan line
SUP 3: Y88.87 High Jan 16
SUP 4: Y88.41/44 High Jan 4, 21-day moving average
EUR/JPY: Highest Since Apr 2012 Despite Negative Momentum. EUR/JPY pushed higher to storm through resistance, reaching the highest it’s been since Apr 2011. However, daily momentum study shows negative divergence and slow stochastic is at overbought levels, where it has been since Nov 2012. Despite this, the weekly chart shows long lower shadows indicating heavy buying pressure. Euro-yen is seen as bullish while it remains above the Dec 21 supp line at Y117.69. Key res seen at Y121.78, the 3.00% MA envelope.
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: Y121.78 3.00% MA envelope
RES 1: Y121.31 Hourly high
LATEST PRICE: Y120.97
SUP 1: Y120.13/16 High Jan 14, 22
SUP 2: Y118.89 Tenkan line
SUP 3: Y117.69 Dec 10 support line
SUP 4: Y117.15 21-day moving average
EasyForexNews Research Team