EUR/USD surges higher once more to break above the daily and weekly Bolli bands but finds resistance from the monthly Bolli band top, now at $1.3798. Price action today left a high at $1.3793, which could form a double-day high with yesterday’s high at $1.3792 – combined with the overbought studies adds risk downside, initial suppt is dly Bolli top at $1.3752. However, bulls may look to break above $1.3800 to test $1.3852 – the Jul 2007 high.
R 4: $1.3958 50.0% of $1.6038-1.1877
R 3: $1.3882 2% 15-DMA Envelope top
R 2: $1.3852 High Jul 2007
R 1: $1.3798 Monthly Bollinger band top
Latest price: $1.3775
S 1: $1.3752 Daily Bollinger band top
S 2: $1.3711 Reversal high Jan 2013
S 3: $1.3681/82 Reversal high Apr 2007, High Oct 17
S 4: $1.3631 23.6% of $1.3105-1.3793
GBP/USD rose to test the channel top and also key Oct 1 high at $1.6260 but bulls failed to break above despite bullish mthly studies. Bulls may look to retest this level and break above to test key res around $1.6300, but further failure adds further downside risk – bears look to support while 10-week and 10-month momentum studies slide – initial support at $1.6188 – 5-DMA. Below here is 21-DMA at $1.6093, 23.6% at $1.6064 and the channel base at $1.6030.
R 4: $1.6381 Reversal high Jan 2013
R 3: $1.6302/09 Reversal Highs May, Sep 2012
R 2: $1.6288 Daily Bollinger band top
R 1: $1.6260 High Oct 1
Latest price: $1.62223
S 1: $1.6203 High Sept 30
S 2: $1.6188 5-day moving average
S 3: $1.6122 High Oct 9
S 4: $1.6093 21-DMA
USD/JPY slides to Y97.28 – the 200-DMA and slipped below to a low of Y97.27, however holds above. Studies are reversing lower and a break below this level opens the downside to Y96.57 – the Oct 8 low, below here is the Apr 2 support line at Y96.00 which could halt bears but further downside breaks target Y94.00. As all studies are bearish bulls may find it hard to gain control, but failure to break below these key levels could flip sentiment higher
R 4: Y98.95 Daily Ichimoku cloud top
R 3: Y98.56/59 Daily Ichimoku base, 50.0% of Y100.61-96.57
R 2: Y98.68 100-day moving average
R 1: Y98.14 Daily Tenkan
Latest price: Y97.35
S 1: Y97.28 200-day moving average
S 2: Y96.74 Daily Bollinger band base
S 3: Y96.57 Low Oct 8
S 4: Y96.00 Apr 2 support line
EUR/JPY sinks back into the daily Bolli band after bursting above to test the Apr 2009 reversal high at Y135.57, leaving a high at Y135.51. Since then, bears control and have formed a bearish engulfing candle pattern – a close here or lower is needed to confirm. Daily studies are also reversing lower and further downside breaks target the Jun support line seen at Y131.71. Ahead of here, is the daily Tenkan at Y133.98 and daily Kijun at Y133.33.
R 4: Y136.89 Jul 2009 reversal high
R 3: Y135.51/57 High Oct 22, Apr 2009 reversal high
R 2: Y135.28/30 Hourly high, Weekly Bolli band top
R 1: Y134.99 Daily Bollinger band top
Latest price: Y134.18
S 1: Y133.97/98 Hourly low, Daily Tenkan line
S 2: Y133.80/84 May 22 reversal high, 38.2% Y131.15-135.51
S 3: Y133.33 Daily Kijun line, 50.0% Y131.15-135.51
S 4: Y133.05 21-day moving average
