EUR/USD spikes massively higher to stretch studies further into overbought territory, bulls now trade above daily Bollinger band after hitting a high of $1.3542 yesterday, now initial res. Above here resistance is thin, next level seen at $1.3681, reversal high from Feb 2007. However, bears will likely be looking to recover some of yesterday’s massive gains, initial support is hourly low at $1.3501 and below here suppt at $1.3452, Aug 20 reversal high.
R 4: $1.3711 High Jan 2013
R 3: $1.3693 Monthly Bollinger band top
R 2: $1.3681 Reversal high Feb 2007
R 1: $1.3542 High Sept 18
Latest price: $1.3531
S 1: $1.3501 Hourly low
S 2: $1.3452 Reversal high Aug 20
S 3: $1.3439 23.6% of $1.3105-1.3542
S 4: $1.3400 High Aug 8
GBP/USD also spikes massively higher to burst through the daily Bollinger band top and out of the rising channel also, breakout of channel targets $1.6278. Ahead of here, initial resistance at $1.6163, yesterday’s high. However, daily/weekly studies are becoming more overbought and bears likely aim to consolidate, initial support is at $1.6082, daily Bolli top. Below here is the Mar 2012 reversal high at $1.5993 and then channel top at $1.5966.
R 3: $1.6331 Monthly Triangle Top
R 2: $1.6309 Reversal High Sep 2012
R 2: $1.6278 Channel breakout measured move target
R 1: $1.6163 High Sept 18
Latest price: $1.6127
S 1: $1.6081 Daily Bollinger band top
S 2: $1.5993 Reversal high Mar 2012
S 3: $1.5966 Channel top from Jul 3
S 4: $1.5915 Monthly triangle base
USD/JPY slides through support to break within the daily Ichimoku cloud, the top is initial support now at Y97.91, just above the hourly low at Y97.88. Daily studies remain bearish while monthly studies are still overbought, further support seen at Y97.66, the 50.0% of Y93.79-101.53 and the daily Ichimoku cloud base. A break below could accelerate losses but current price action is a little higher and bulls eye the daily Kijun at Y98.71.
R 4: Y99.18 Daily Tenkan line
R 3: Y98.96 21-day moving average
R 2: Y98.71 Daily Kijun
R 1: Y98.46/48 Low Sept 16, Hourly high
Latest price: Y98.31
S 1: Y97.88/91 Hourly low, Daily Ichimoku cloud top
S 2: Y97.66 50.0% of Y93.79-101.53 & Daily Cloud base
S 3: Y97.30 Daily Bollinger band base
S 4: Y97.12 Weekly Support line from June
EUR/JPY still above former May 22 trendline and pushing higher while daily/weekly studies edge a little higher – the May 22 reversal high at Y133.80 is the likely target to be tested by bulls, a break above Sept 11 high at Y133.38 is required first. We remind of the measured move target at Y134.39 following pennant pattern breakout. However, we also note the overbought studies which could weigh on bulls. Initial suppt at Y132.18 – daily Tenkan line.
R 4: Y134.38/39 Jan 2010 reversal high, Measured move target
R 3: Y133.77/80 Weekly Bollinger band top, Reversal high May 22
R 2: Y133.61 Daily Bollinger band top
R 1: Y133.38 High Sept 11
Latest price: Y133.00
S 1: Y132.18 Daily Tenkan line
S 2: Y132.04 50.0% of Y169.96-Y94.12
S 3: Y131.77 Former Trendline from May 22
S 4: Y131.63 21-day moving average