EUR/USD tested above $1.3800 again but failed here and instead closed at its lowest in 10 days. Bulls may attempt to retest above $1.3800 but daily studies still reversing in overbought territory, bears may take control to test support. The 23.6% of $1.3105-1.3832 is key support at $1.3660, but ahead of here is the Jan 2013 and Apr 2007 reversal highs at $1.3711 and $1.3681, respectively. Move below here could test the Sept 6 support line at $1.3604.
R 4: $1.3827/32 Weekly Bolli band top, High Oct 28
R 3: $1.3793 High Oct 23
R 2: $1.3774 5-day moving average
R 1: $1.3750 Hourly high
Latest price: $1.3741
S 1: $1.3711 Reversal high Jan 2013
S 2: $1.3681/82 Reversal high Apr 2007, High Oct 17
S 3: $1.3660 23.6% of $1.3105-1.3832
S 4: $1.3646/47 High Oct 3, 21-day moving average
GBP/USD breaks below the channel base and closed below the 23.6% of $1.5429-1.6260, now initial resistance at $1.6064. Bulls may attempt to retest this level and close back within the channel, but studies are bearish or overbought adding pressure lower. The downside channel breakout targets measured move to just below $1.5900, which is currently also the daily Bolli band base and 55-DMA. Ahead of here, key support at $1.5919 – the 23.6% of $1.4814-1.6260.
R 4: $1.6145 High Oct 29
R 3: $1.6110 Channel base Jul 3
R 2: $1.6089 21-DMA
R 1: $1.6064 23.6% of $1.5429-1.6260
Latest price: $1.6047
S 1: $1.6024 Low Oct 29
S 2: $1.6002 High Oct 11
S 3: $1.5943 38.2% of $1.5429-1.6260
S 4: $1.5919 23.6% of $1.4814-1.6260
USD/JPY bounces from the 200-DMA to break above the 38.2% at Y98.11 before holding just below the daily Ichimoku cloud base, now initial resistance at Y98.34 with the 55-DMA at Y98.35 and 100-DMA at Y98.40. Daily studies suggest a reversal higher but monthly studies remain bearish, a break above initial resistance targets a new Sept 11 resistance line at Y98.46, but failure to sustain a rally could see bears return to the 200-DMA at Y97.49.
R 4: Y99.07 61.8% of Y100.61-96.57
R 3: Y98.79 Daily Ichimoku cloud top
R 2: Y98.59 50.0% of Y100.61-96.57
R 1: Y98.34/35 Daily Ichimoku base, 55-DMA
Latest price: Y98.22
S 1: Y98.11 38.2% of Y100.61-96.57
S 2: Y97.71/78 Daily Tenkan line, 21-DMA
S 3: Y97.49 200-DMA
S 4: Y96.91/94 Low Aug 20, Low Oct 25
EUR/JPY tested the downside yesterday before moving higher to remain above the daily Tenkan line which is initial support at Y134.56. Daily studies appear to be moving higher once more and bulls look to retest Y135.51 to resume tracking higher – a break above here targets the daily & weekly Bolli band tops at Y135.81/87. However, failure at these levels again could see bears flip sentiment to the downside to test the Jun 13 support line around Y132.00.
R 4: Y135.95 Monthly Ichimoku cloud top
R 3: Y135.81/87 Daily, Weekly Bollinger band tops
R 2: Y135.51 High Oct 22
R 1: Y135.17 High Oct 29
Latest price: Y134.92
S 1: Y134.56 Daily Tenkan line
S 2: Y134.27 Low Oct 29
S 3: Y133.80/84 May 22 reversal high, 38.2% Y131.15-135.51
S 4: Y133.33 Daily Kijun line, 50.0% Y131.15-135.51
