EUR/USD held between the 50.0% and 38.2% of $1.3105-1.3832 while bears failed to test the Jul 10 support line yesterday. Daily studies are slowing near oversold levels so failure by bears to break below the Jul 10 support line, now at $1.3461, adds upside risk. Initial resistance at $1.3524, the hourly high and Nov 4 high. However, a break below $1.3461 targets $1.3383, the 61.8% level before a longer-term Jul 2012 support line beckons at $1.3236.
R 4: $1.3631 21-day moving average
R 3: $1.3598 High Oct 14
R 2: $1.3554 Former 38.2% of $1.3105-1.3832
R 1: $1.3524 Hourly high & High Nov 4
Latest price: $1.3526
S 1: $1.3486 55-day moving average
S 2: $1.3461/69 Support line Jul 10, 50.0% of $1.3105-1.3832
S 3: $1.3452 Reversal high Aug 20
S 4: $1.3442 Low Nov 4
GBP/USD appears to be running out of steam as it struggles to hold above the 23.6% and 21-DMA at $1.6064/70 despite daily slow stochastic showing a buy-signal. A break above yesterday’s high at $1.6118 could see bulls advance to the rising channel base at $1.6206 before setting sights on the Oct 1 reversal high at $1.6260, however bears may take the opportunity to retest the Nov 4 low at $1.5904 – a break below here likely targets the 76.4% at $1.5625.
R 4: $1.6254/60 Daily Bolli band top, High Oct 1
R 3: $1.6206 Channel base Jul 3
R 2: $1.6163 High Sept 18
R 1: $1.6118 High Nov 6
Latest price: $1.6086
S 1: $1.6021 5-day moving average
S 2: $1.5999 Low Oct 30
S 3: $1.5941/43 55-DMA, 38.2% of $1.5429-1.6260
S 4: $1.5904/19 Low Nov 4, 23.6% of $1.4814-1.6260
USD/JPY struggles to make headway higher despite the rising daily studies, dly slow stochastic has entered overbought territory adding a little pressure lower. Bears eye initial support, the daily Ichimoku cloud top at Y98.46 just above 55-DMA at Y98.45. A break below targets the 21-DMA and cloud base at Y98.19/21 where a convergence of support levels is noted. A break higher could see bulls test the res line from May highs seen at Y99.01.
R 4: Y99.36 High Sept 23
R 3: Y99.01/07 May res line, 61.8% of Y100.61-96.57
R 2: Y98.85 Highs Nov 1 & 4
R 1: Y98.76 High Nov 6
Latest price: Y98.60
S 1: Y98.45/46 55-DMA, Daily Ichimoku cloud top
S 2: Y98.19/21 21-DMA, Daily Ichimoku base
S 3: Y98.11/15 38.2% of Y100.61-96.57, Daily Tenkan
S 4: Y97.72/79 200-DMA, Daily Kijun
EUR/JPY rose to test resistance around Y133.80 which is the May 22 reversal high – downside pressure prevailed to leave a long upper shadow which could see bears take control, however daily studies show signs of turning higher and bulls could retest Y133.80/84 with eyes on the daily Tenkan line at Y133.92. However, failure here again adds risk lower and bears may look to retest the Jun 13 support line now at Y132.50 which is just below daily Cloud top at Y132.55.
R 4: Y134.95/99 High Sept 19, High Oct 29
R 3: Y134.38 Jan 2010 reversal high
R 2: Y133.92 Daily Tenkan line
R 1: Y133.80/84 May 22 reversal high, 21-DMA
Latest price: Y133.41
S 1: Y132.76/82 55-DMA, 61.8% of Y131.15-135.51
S 2: Y132.50/55 Support line from Jun 13, Daily cloud top
S 3: Y132.18/32 76.4% of Y131.15-135.51, Daily Bolli base
S 4: Y131.46/53 Daily Ichimoku cloud base, 100-DMA
