EUR/USD leaves a long white candle with a long lower shadow while bulls close above the Feb 2013 former res line, now part of initial support at $1.3291/3300. However, studies still a bit mixed, weekly stochastic rises but 10-wk momentum still declines. Bulls likely eye a test of key res around $1.3400 and a close around current price or higher would leave a doji or hammer on weekly chart, adding risk to the upside.
R 4: $1.3475/83 55-month MA
R 3: $1.3444 100-month MA
R 2: $1.3390-3417 Dly Bollinger band top, 200-week MA, Highs Aug 8, Jun 18, 19
R 1: $1.3363 High Aug 15
Latest price: $1.3340
S 1: $1.3291/3300 Resistance line from Feb 2013, 5-DMA & High Aug 5
S 2: $1.3228/34/48 Low Aug 13
S 3: $1.3200/06/07 High Apr 17, Low Aug 15, High Jul 11
S 4: $1.3154/78 55-DMA
GBP/USD broke above the pennant pattern to test the daily Bollinger band top, the breakout targets a measured move to $1.5856 if price action today holds above the pennant top, seen as initial support at $1.5546. Studies are mixed but mainly bullish, although daily studies becoming overbought but monthly studies look likely to reverse higher. Focus now turns to Jun 17 reversal high at $1.5752, a break above here would be the highest since Feb 11
R 4: $1.5752/54/56/89 High Jun 17, 55-mth MA, 200-wk MA
R 3: $1.5717 Weekly Bollinger band top
R 2: $1.5684/88 High Jun 6, 100-week MA
R 1: $1.5643/46/49 55-week MA, Hourly high, Daily Bollinger band top
Latest price: $1.5623
S 1: $1.5537/42/46 5-DMA, Resistance line Jan 2013, Pennant top from Jun 17
S 2: $1.5512/24 High Aug 12, 200-DMA
S 3: $1.5477 High Jun 25
S 4: $1.5423/24/27 Low Aug 14, Low Aug 12
USD/JPY declined from the key resistance level around Y98.34 to Y98.83 to test suppt around Y97.00. However, Daily studies are more-or-less bullish and another test of the key resistance level is likely. Ahead of here, initial res is at Y97.79/81, the Aug 2009 high and the weekly Tenkan line. Failure at either of these levels could send studies lower once more as monthly studies are reversing in overbought territory.
R 4: Y99.59/70/94 Res line May 22
R 3: Y99.04/08/15 Lows Jul 17, 15, Aug 5 high
R 2: Y98.34-83 Dly Kijun, Dly Ichimoku base, Cloud top, 100-DMA
R 1: Y97.79/81 Aug 2009 high, Weekly Tenkan
Latest price: Y97.60
S 1: Y97.05/06 Lows Aug 16, 15
S 2: Y96.75/87 Jun 21 low
S 3: Y95.62/77/81/85 High Jun 18, Low Aug 8, Dly Bolli base
S 4: Y94.87/99/95.22 Apr 2 suppt line, May 2010 high & Jun 7 low, Jun 17 high
EUR/JPY now testing res and suppt after yesterday saw bulls attempt to break above the daily Kijun line and 21-DMA, now initial res at Y130.41, just below the hourly high at Y130.43. However, bears managed to close back below, bulls eye a test of Jul 24 res line at Y130.89 but failed to reach here for past two sessions – highs are further res at Y130.66/72. Continued failure here could send studies lower, monthly studies are overbought.
R 4: Y131.41/44/57/58 Highs Jun 4 & 5, Aug 5 high, 100-Month MA
R 3: Y131.12 High Apr 11 & Jul 2
R 2: Y130.66/72/89 Highs Aug 14, 15, Resistance line from Jul 24
R 1: Y130.41/43 21-DMA, Hourly high
Latest price: Y130.13
S 1: Y129.34/39/58/59 100-DMA, Daily Ichimoku cloud top, Hourly low, 55-DMA
S 2: Y128.86/98 Daily Ichimoku cloud base, Low May 8
S 3: Y128.19-31 Dly Bolli base, Jun 13 suppt, 200-mth MA
S 4: Y127.98 Aug 12 reversal low