EUR/USD has left another long upper shadow after bulls tested above short-term resistance line from Oct 3 leaving a high at $1.3598 and new initial resistance. Daily studies show potential top turn higher and a break of $1.3600 level targets Oct 3 high at $1.3646, however weekly studies are either bearish or overbought and failure at resistance could shift sentiment lower, bears focus on 21-DMA at $1.3529, 23.6% at $1.3518 and Oct 9 low at $1.3486.
R 4: $1.3711 High Jan 2013
R 3: $1.3681 Reversal high Apr 2007
R 2: $1.3630/46 Daily Bollinger band top, High Oct 3
R 1: $1.3598 High Oct 14
Latest price: $1.3563
S 1: $1.3543 5-day moving average
S 2: $1.3529 21-day moving average
S 3: $1.3518 23.6% of $1.3105-1.3646
S 4: $1.3486 Low Oct 9
GBP/USD leaves a higher high and low despite bearish daily studies, weekly studies are also reversing in overbought territory adding to the downside risk. Bears require a break below the channel base from Jul 3 – seen at $1.5934 – which would target a measure move to around $1.5670. However, further failure to break support could turn focus to the upside – bulls currently hold just below the psychological $1.6000 level and above here is 21-DMA at $1.6057
R 4: $1.6178 Channel top from Jul 3
R 3: $1.6100 High Oct 7
R 2: $1.6057 21-day moving average
R 1: $1.5998/6002 Hourly high, High Oct 11
Latest price: $1.5992
S 1: $1.5943 38.2% of $1.5429-1.6260
S 2: $1.5934 Channel base from Jul 3
S 3: $1.5919 23.6% of $1.4814-1.6260
S 4: $1.5883 Daily Bollinger band base
USD/JPY manages to regain the daily Ichimoku cloud but current price action is descending after testing the cloud top at Y98.67, still initial res. Daily studies remain bullish and we may see another test of this level especially as channel breakout from Oct 10 targets measured move to Y100.05, however yesterday’s gap lower and lower high adds downside risk. Initial support is the 55-DMA at Y98.31, below here key support seen at Y97.63, daily Tenkan
R 4: Y100.04/05 Monthly Ichimoku cloud top, Channel break target
R 3: Y99.34 Former Aug support line
R 2: Y99.07 61.8% of Y100.61-96.57
R 1: Y98.67/70 Daily Ichimoku cloud top, Hourly high
Latest price: Y98.44
S 1: Y98.31 55-day moving average
S 2: Y98.20 21-day moving average
S 3: Y97.92 Low Oct 11
S 4: Y97.63 Daily Tenkan
EUR/JPY broke above the 61.8% level again yesterday which now holds the downside – daily studies are still bullish and the pair looks to hold above initial support, seen as the daily Kijun at Y133.05. However, monthly studies are overbought and failure to break above the Sept 19 reversal high at Y134.95 could see bears take control. Ahead of here, resistance seen at Y133.80/83, the May 22 reversal high and hourly high and above here is the 76.4% at Y134.05.
R 4: Y134.54 Daily Bollinger band top
R 3: Y134.38 Jan 2010 reversal high
R 2: Y134.05 76.4% of Y134.95-131.15
R 1: Y133.80/83 May 22 reversal high, Hourly high
Latest price: Y133.53
S 1: Y133.05 Daily Kijun line
S 2: Y132.85 21-DMA
S 3: Y132.49 Daily Tenkan line
S 4: Y132.12 Weekly Tenkan line
