EUR/USD breaks above $1.3800 to squeeze above monthly Bolli top to test daily Bolli top. Studies are still bullish but daily studies show signs of slowing, failure to retest yesterday’s high at $1.3825 could flip sentiment lower to test the 23.6% at $1.3655. However, weekly/monthly studies remain bullish and a break above could see bulls target the resistance line from 2008 highs around $1.4010, but ahead of here, resistance at $1.3852, Jul 2007 high.
R 4: $1.3958 50.0% of $1.6038-1.1877
R 3: $1.3912 2% 15-DMA Envelope top
R 2: $1.3852 High Jul 2007
R 1: $1.3825 High Oct 24
Latest price: $1.3815
S 1: $1.3793 High Oct 23
SP 2: $1.3771 5-day moving average
S 3: $1.3711 Reversal high Jan 2013
S 4: $1.3681/82 Reversal high Apr 2007, High Oct 17
GBP/USD moves up to just below the Oct 1 reversal high again, bulls aim to break above while studies continue to point higher but the $1.6260 level remains unbroken for now. A break above targets channel top at $1.6273 followed by daily Bolli band top at $1.6306 (also the May 2012 reversal high at $1.6302). We remind that cable remains in a bullish trend while above $1.5750 which is the top of double-bottom pattern on monthly chart and targets a move to $1.6690.
R 4: $1.6381 Reversal high Jan 2013
R 3: $1.6317 Monthly Triangle Top
R 2: $1.6302/09 Reversal Highs May, Sep 2012
R 1: $1.6260/73 High Oct 1, Channel top from Jul 3
Latest price: $1.6228
S 1: $1.6172 High Oct 17
S 2: $1.6120/22 Low Oct 23, High Oct 9
S 3: $1.6106 21-DMA
S 4: $1.6062/64 Channel base Jul 3, 23.6% of $1.5429-1.6260
USD/JPY now south of the 200-DMA after closing below yesterday, becomes initial resistance at Y97.35. Daily studies are much lower also and bears look to break below Y96.57, Oct 8 low, a move through this level then tests Apr support line at Y96.04 and Aug 8 low at Y95.81. Below Aug 8 low support becomes thin until around Y94.00 – lows of Jun, but studies are bearish and sentiment may have flipped to the downside if bears can hold below 200-DMA.
R 4: Y98.00 Low Oct 15
R 3: Y97.78 21-day moving average
R 2: Y97.52 23.6% of Y100.61-96.57
R 1: Y97.35/43 200-DMA, Hourly high
Latest price: Y97.06
S 1: Y96.91 Low Aug 20
S 2: Y96.57/63 Low Oct 8, Daily Bollinger band base
S 3: Y96.04 Apr 2 support line
S 4: Y95.81 Low Aug 8
EUR/JPY now struggling to break below Y134.00 and just below here is a key support level at Y133.84 – the 38.2 of Y135.51-131.34. Daily studies have turned south and a break below the 38.2% could see 10-day momentum slip into negative territory – next support would be daily Kijun and 50.0% level at Y133.33. Bears may look to target the Jun support line around Y131.85 as a break below here confirms a downtrend – also of note is the 200-month MA at Y128.22.
R 4: Y136.89 Jul 2009 reversal high
R 3: Y135.51/57 High Oct 22, Apr 2009 reversal high
R 2: Y135.18 Daily Bollinger band top
R 1: Y134.48 Former 23.6% of Y131.15-135.51
Latest price: 134.07
S 1: Y133.80/84 May 22 reversal high, 38.2% Y131.15-135.51
S 2: Y133.33 Daily Kijun line, 50.0% Y131.15-135.51
S 3: Y133.13 21-day moving average
S 4: Y132.84 61.8% Y131.15-135.51
