EUR/USD tested the 23.6% as support but bulls pushed higher to close above the 5-DMA – now initial support at $1.3508. Daily studies remain in overbought levels and have firmed slightly to start trending sideways, bulls may use this opportunity to attempt a breakout to the upside – key resistance is at $1.3569, the Sept 19 reversal high and below here is yesterday’s high at $1.3537. A break above these levels could target the Feb 2013 high at $1.3711.
R 4: $1.3681 Reversal high Apr 2007
R 3: $1.3610 Daily Bollinger band top
R 2: $1.3569 High Sept 19
R 1: $1.3537 High Sept 25
Latest price: $1.3520
S 1: $1.3508 5-day moving average
S 2: $1.3459 23.6% of $1.3105-1.3542
S 3: $1.3400 High Aug 8
S 4: $1.3392 38.2% of $1.3105-1.3542
GBP/USD rebounds from support to close back above the channel top despite the bearish daily studies – bulls now look towards the Sept 18 high at $1.6163 while monthly studies reverse higher and weekly studies continue to rise. A break above $1.6163 could see bulls retest the Jan 2013 high at $1.6381 and ahead of here is the channel breakout target at $1.6278. However, failure at the Sept 18 high again could send the overbought studies plummeting.
R 4: $1.6278 Channel breakout measured move target
R 3: $1.6230 Daily Bollinger band top
R 2: $1.6163 High Sept 18
R 1: $1.6107 High Oct 2010
Latest price: $1.6073
S 1: $1.6043 5-day moving average
S 2: $1.6025 Channel top from Jul 3
S 3: $1.5990 23.6% of $1.5429-1.6163
S 4: $1.5956 Low Sept 24
USD/JPY met support yesterday from the Aug 12 support line and today slipped below as bears attempted follow daily studies lower, however the pair has risen to test resistance and currently holds above daily Tenkan but below 100-DMA at Y99.06 and 21-DMA at Y99.19. Dly studies were bearish but show signs of strengthening, however monthly studies are still overbought. A break above the 21-DMA could see bulls take control to retest the key Y100.00 level.
R 4: Y100.42 Daily Bollinger band top
R 3: Y99.94/99 61.8% of Y103.74-93.79, High Sept 12
R 2: Y99.67 High Sept 20
R 1: Y99.09 21-DMA
Latest price: Y98.91
S 1: Y98.38 Support line from Aug 12
S 2: Y98.15 Weekly Kijun line
S 3: Y97.85 Daily Ichimoku cloud top
S 4: Y97.66 Daily Ichimoku Cloud base
EUR/JPY now turning higher as bulls struggle to hold above the daily Tenkan line at Y133.28. Daily studies were looking a little bearish but now suggests some upside momentum – 10-day momentum study rebounds from the zero-line indicating some risk higher. Initial resistance at Y134.00, hourly and Sept 24 high, a break above would threaten the Sept 19 high at Y134.95. However, failure to close above Tenkan line would likely turn dly studies lower again.
R 4: Y134.95 High Sept 19
R 3: Y134.77 Daily Bollinger band top
R 2: Y134.38 Jan 2010 reversal high
R 1: Y134.00 High Sept 24
Latest price: Y133.68
S 1: Y132.70 Low Sept 24
S 2: Y132.12/27 Daily Kijun line, 21-DMA
S 3: Y131.66 Former Trendline from May 22
S 4: Y130.20 55-day moving average