EUR/USD: Potential Double-Day High Cautions Bulls. The pair leaves a doji around its 11-month high. The pair leaves a double-day high and the stretched daily studies caution bulls. The high of $1.3479 caps the upside, however a break above here could see a challenge of the 50.0% of $1.4940-1.2043 at $1.3491. Bears look to move down to the 23.6% of $1.2877-1.3479, supp at $1.3337. Monthly studies are bullish so any correction would be limited. Having said that, weekly studies are turning bearish.
RES 4: $1.3561 55-month MA
RES 3: $1.3529/36 200-week MA, Upper daily Bollinger band
RES 2: $1.3487/91 High Feb 2012, 50.0% of $1.4940 to $1.2043
RES 1: $1.3479 High Jan 25
LATEST PRICE: $1.3455
SUP 1: $1.3404/14 High Jan 14, 5-day moving average
SUP 2: $1.3378 100-week MA
SUP 3: $1.3337 23.6% of $1.2877-1.3479
SUP 4: $1.3249/65/67/74 38.2% of $1.2877-1.3479, Lows of Jan 23 & 22, 21-DMA
GBP/USD: RSI Now Oversold As Daily Studies Slide Further. GBP plummets further sending daily studies deeper into oversold territory, however weekly studies remain firmly bearish and monthly studies are just turning lower. Focus turns to the rising monthly trendline at $1.5571, a break and close below here could see the pair collapse further, perhaps to $1.4855, the 61.8% of $1.3503 to $1.7043. However, daily studies may turn higher as RSI enters oversold levels. Initial res seen at $1.5767, the 5-DMA.
RES 4: $1.5945/49 38.2% of $1.6381-1.5675, 100-week MA
RES 3: $1.5882/5900 55-week MA, 200-DMA
RES 2: $1.5833/42/55 S-T Jan 2 res line, 23.6% of $1.6381-1.5675, 200-wk MA
RES 1: $1.5767 5-DMA
LATEST PRICE: $1.5705
SUP 1: $1.5655/75 Lower daily Bolli band, Low Jan 28
SUP 2: $1.5531/71 76.4% of $1.5269-1.6381, Monthly Trendline from Jan 2009
SUP 3: $1.5491 Low Aug 2 2012
SUP 4: $1.5372 Lower Monthly Bollinger band
USD/JPY: Nears Key Dec 21 Supp Line, Monthly Studies Bullish. USD/JPY corrects a little and moves closer to the key Dec 21 support line at Y90.03, the pair broke below this support line once before but quickly moved back above. Another test of this supp level may see bears break below to test the Tenkan line and the 23.6% of Y81.69-91.26, further support at Y89.66 and Y89.00, respectively. 10-day momentum remains bearish but has firmed a touch and upside risk remains, the Jan 28 high at Y91.26 is key res.
RES 4: Y94.99 May 2010 reversal high
RES 3: Y93.99 38.2% Fibonacci of Y124.14 to Y75.35
RES 2: Y92.17 3.00% MA Envelope
RES 1: Y91.26/27 High Jan 28, 2.00% MA envelope
LATEST PRICE: Y90.69
SUP 1: Y90.03 Dec 21 support line
SUP 2: Y89.66 Tenkan line
SUP 3: Y89.00/09 23.6% of Y81.69-91.26, Low Jan 14
SUP 4: Y88.87/88 High Jan 16, 21-day moving average
EUR/JPY: Weekly Studies Turning Lower, Bulls Eye Y122.91. EUR/JPY correcting a little as it hangs around just below yesterday’s high of Y122.91. 10-day momentum has ticked higher after showing a little negative divergence, which may caution bears. A break above the Jan 28 high of Y122.91 may open the top to res at Y123.09/33 the 38.2% of Y169.96-Y94.12 and the Apr 2011 high, respectively. However, weekly studies are turning lower, the pair may correct to the key Dec 21 supp line at Y118.38.
RES 4: Y132.04/24 50.0% of Y169.96-Y94.12, 100-month MA
RES 3: Y127.91 High April 2010
RES 2: Y123.09/33 38.2% of Y169.96-Y94.12, Apr 2011 reversal high
RES 1: Y122.91 High Jan 28
LATEST PRICE: Y122.10
SUP 1: Y120.61/71 High Jan 17, 18
SUP 2: Y119.96 Tenkan line
SUP 3: Y118.91 23.6% of Y105.98-122.91
SUP 4: Y118.38 Dec 10 support line
EasyForexNews Research Team